SAN RAFAEL, Calif., Jan. 16, 2020 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the fourth quarter 2019 of $20.7 million and diluted earnings per common share ("EPS") of $0.77. These results compare to net income of $20.4 million and EPS of $0.75 for the third quarter 2019 and net income of $19.1 million and EPS of $0.71 for the fourth quarter 2018.

“The annualized net interest margin was 3.08 percent during the fourth quarter 2019. Our annualized funding costs as a percentage of our interest-earning assets improved from 0.04 percent for the third quarter 2019 to 0.03 percent for the fourth quarter 2019. Operating expense represented only 46 percent of revenues for the fourth quarter 2019. Asset quality remained healthy during the fourth quarter 2019 with nonperforming assets totaling only $4.9 million at December 31, 2019,” said Chairman, President and CEO David Payne. “Annualized fourth quarter operating results generated a return on average shareholders’ equity of 11.8 percent, and the Company also paid its shareholders a $0.41 dividend per common share in the fourth quarter,” concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $40.5 million for the fourth quarter 2019, compared to $40.3 million for the third quarter 2019 and $40.3 million for the fourth quarter 2018.  The annualized net interest margin (FTE) was 3.08 percent for the fourth quarter 2019, compared to 3.11 percent for the third quarter 2019 and 3.06 percent for the fourth quarter 2018. Checking and savings deposits, which pay much lower interest rates than time deposits, represented ninety-six percent of the Company’s average deposit base during the fourth quarter 2019.

The Company recognized no provision for loan losses for the fourth quarter 2019 given low levels of nonperforming loans and other credit quality attributes.

Noninterest income for the fourth quarter 2019 totaled $11.7 million, compared to $11.8 million for the third quarter 2019, and $11.9 million for the fourth quarter 2018. 

Noninterest expense for the fourth quarter 2019 totaled $24.2 million, compared to $24.0 million for the third quarter 2019.  Noninterest expense for the fourth quarter 2019 was $1.6 million lower than the fourth quarter 2018 due to lower employee benefit costs, FDIC insurance assessments, and intangible amortization in the fourth quarter 2019. Lower 2019 FDIC assessments are due to application of Westamerica Bank’s assessment credit described in our December 31, 2018 Form 10-K, Part 1, Item 1, “Premiums for Deposit Insurance.”

The tax rate (FTE) applied to pre-tax income (FTE) was 26.0 percent for the fourth quarter 2019 compared to 27.5 percent for the third quarter 2019 and 27.8 percent for the fourth quarter 2018. The fourth quarter 2019 tax provision was reduced by $352 thousand resulting from a customary adjustment to true-up the Company’s 2018 estimated tax provision to the filed 2018 tax return.

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

Westamerica Bancorporation Web Address: www.westamerica.com

For additional information contact:
 Westamerica Bancorporation
 1108 Fifth Avenue, San Rafael, CA 94901
 Robert A. Thorson – Treasurer
 707-863-6840
 investments@westamerica.com

FORWARD-LOOKING INFORMATION:

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

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

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2018 filed on Form 10-K and quarterly report for the quarter ended September 30, 2019 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company's business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, cyber security risks, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2011, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.

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

 



 Public Information January 16, 2020
 
WESTAMERICA BANCORPORATION    
FINANCIAL HIGHLIGHTS     
December 31, 2019     
       
1. Net Income Summary.     
  (in thousands except per-share amounts) 
    %  
  Q4'2019Q4'2018ChangeQ3'2019 
       
 Net Interest and Fee Income (FTE)$40,481 $40,288 0.5%$40,349  
 Provision for Loan Losses -  - n/m  -  
 Noninterest Income 11,732  11,897 -1.4% 11,809  
 Noninterest Expense 24,209  25,787 -6.1% 24,033  
 Income Before Taxes (FTE) 28,004  26,398 6.1% 28,125  
 Income Tax Provision (FTE) 7,276  7,343 -0.9% 7,735  
 Net Income$20,728 $19,055 8.8%$20,390  
       
 Average Common Shares Outstanding 27,050  26,729 1.2% 26,986  
 Diluted Average Common Shares 27,094  26,815 1.0% 27,027  
       
 Operating Ratios:     
 Basic Earnings Per Common Share$0.77 $0.71 7.9%$0.76  
 Diluted Earnings Per Common Share$0.77  0.71 6.3% 0.75  
 Return On Assets (a) 1.46% 1.33%  1.45% 
 Return On Common Equity (a) 11.8% 11.7%  11.9% 
 Net Interest Margin (FTE) (a) 3.08% 3.06%  3.11% 
 Efficiency Ratio (FTE) 46.4% 49.4%  46.1% 
       
 Dividends Paid Per Common Share$0.41 $0.40 2.5%$0.41  
 Common Dividend Payout Ratio  54% 56%  55% 
       
    %  
  12/31'19YTD12/31'18YTDChange  
       
 Net Interest and Fee Income (FTE)$161,406 $155,410 3.9%  
 Provision for Loan Losses -  - n/m   
 Noninterest Income 47,408  48,149 -1.5%  
 Noninterest Expense 98,986  106,916 -7.4%  
 Income Before Taxes (FTE) 109,828  96,643 13.6%  
 Income Tax Provision (FTE) 29,439  25,079 17.4%  
 Net Income$80,389 $71,564 12.3%  
       
 Average Common Shares Outstanding 26,956  26,649 1.2%  
 Diluted Average Common Shares 27,006  26,756 0.9%  
       
 Operating Ratios:     
 Basic Earnings Per Common Share$2.98 $2.69 10.8%  
 Diluted Earnings Per Common Share 2.98  2.67 11.6%  
 Return On Assets 1.44% 1.27%   
 Return On Common Equity 11.9% 11.3%   
 Net Interest Margin (FTE) 3.11% 2.98%   
 Efficiency Ratio (FTE) 47.4% 52.5%   
       
 Dividends Paid Per Common Share$1.63 $1.60 1.9%  
 Common Dividend Payout Ratio  55% 60%   
       
2. Net Interest Income.     
  (dollars in thousands) 
    %  
  Q4'2019Q4'2018ChangeQ3'2019 
       
 Interest and Fee Income (FTE)$40,932 $40,802 0.3%$40,804  
 Interest Expense 451  514 -12.3% 455  
 Net Interest and Fee Income (FTE)$40,481 $40,288 0.5%$40,349  
       
 Average Earning Assets$5,243,783 $5,270,708 -0.5%$5,176,744  
 Average Interest-     
   Bearing Liabilities 2,599,703  2,691,370 -3.4% 2,586,880  
       
 Yield on Earning Assets (FTE) (a) 3.11% 3.10%  3.15% 
 Cost of Funds (a) 0.03% 0.04%  0.04% 
 Net Interest Margin (FTE) (a) 3.08% 3.06%  3.11% 
 Interest Expense/     
   Interest-Bearing Liabilities (a) 0.07% 0.08%  0.07% 
 Net Interest Spread (FTE) (a) 3.04% 3.02%  3.08% 
       
    %  
  12/31'19YTD12/31'18YTDChange  
       
 Interest and Fee Income (FTE)$163,294 $157,369 3.8%  
 Interest Expense 1,888  1,959 -3.6%  
 Net Interest and Fee Income (FTE)$161,406 $155,410 3.9%  
       
 Average Earning Assets$5,191,276 $5,212,635 -0.4%  
 Average Interest-     
   Bearing Liabilities 2,630,370  2,722,149 -3.4%  
       
 Yield on Earning Assets (FTE) 3.14% 3.02%   
 Cost of Funds 0.03% 0.04%   
 Net Interest Margin (FTE) 3.11% 2.98%   
 Interest Expense/     
   Interest-Bearing Liabilities 0.07% 0.07%   
 Net Interest Spread (FTE) 3.07% 2.95%   
       
3. Loans & Other Earning Assets.     
  (average volume, dollars in thousands) 
    %  
  Q4'2019Q4'2018ChangeQ3'2019 
       
 Total Assets$5,645,013 $5,680,321 -0.6%$5,570,843  
 Total Earning Assets 5,243,783  5,270,708 -0.5% 5,176,744  
 Total Loans 1,116,446  1,189,744 -6.2% 1,142,668  
   Commercial Loans 219,710  271,165 -19.0% 231,232  
   Commercial RE Loans  568,892  570,059 -0.2% 579,069  
   Consumer Loans 327,844  348,520 -5.9% 332,367  
 Total Investment Securities 3,792,781  3,692,951 2.7% 3,687,049  
   Equity Securities -  1,733 n/m  352  
   Debt Securities Available For Sale 3,027,461  2,684,431 12.8% 2,862,537  
   Debt Securities Held To Maturity 765,320  1,006,787 -24.0% 824,160  
 Total Interest-Bearing Cash 334,556  388,013 -13.8% 347,027  
       
 Loans/Deposits 23.1% 24.2%  24.0% 
       
    %  
  12/31'19YTD12/31'18YTDChange  
       
 Total Assets$5,597,109 $5,620,618 -0.4%  
 Total Earning Assets 5,191,276  5,212,635 -0.4%  
 Total Loans 1,161,779  1,209,167 -3.9%  
   Commercial Loans 248,586  292,893 -15.1%  
   Commercial RE Loans  577,539  557,679 3.6%  
   Consumer Loans 335,654  358,595 -6.4%  
 Total Investment Securities 3,704,764  3,577,597 3.6%  
   Equity Securities 961  1,809 -46.9%  
   Debt Securities Available For Sale 2,844,542  2,503,356 13.6%  
   Debt Securities Held To Maturity 859,261  1,072,432 -19.9%  
 Total Interest-Bearing Cash 324,733  425,871 -23.7%  
       
 Loans/Deposits 24.2% 24.8%   
       
4. Deposits, Other Interest-Bearing Liabilities & Equity.   
  (average volume, dollars in thousands) 
    %  
  Q4'2019Q4'2018ChangeQ3'2019 
       
 Total Deposits$4,839,552 $4,917,901 -1.6%$4,770,976  
   Noninterest Demand  2,279,615  2,280,174 -0.0% 2,234,494  
   Interest-Bearing Transaction 922,772  927,676 -0.5% 916,180  
   Savings 1,464,206  1,510,358 -3.1% 1,441,282  
   Time greater than $100K 75,314  86,141 -12.6% 77,568  
   Time less than $100K 97,645  113,552 -14.0% 101,452  
 Total Short-Term Borrowings 39,766  53,643 -25.9% 50,398  
 Shareholders' Equity 694,709  646,129 7.5% 681,513  
       
 Demand Deposits/     
   Total Deposits 47.1% 46.4%  46.8% 
 Transaction & Savings      
   Deposits / Total Deposits 96.4% 95.9%  96.2% 
       
    %  
  12/31'19YTD12/31'18YTDChange  
       
 Total Deposits$4,801,804 $4,872,081 -1.4%  
   Noninterest Demand  2,222,876  2,209,924 0.6%  
   Interest-Bearing Transaction 932,524  928,277 0.5%  
   Savings 1,464,080  1,519,375 -3.6%  
   Time greater than $100K 78,925  94,919 -16.8%  
   Time less than $100K 103,399  119,586 -13.5%  
 Total Short-Term Borrowings 51,442  59,992 -14.3%  
 Shareholders' Equity 675,512  630,697 7.1%  
       
 Demand Deposits/     
   Total Deposits 46.3% 45.4%   
 Transaction & Savings      
   Deposits / Total Deposits 96.2% 95.6%   
       
5. Interest Yields Earned & Rates Paid.    
  (dollars in thousands)  
  Q4'2019  
  AverageIncome/Yield (a) /  
  VolumeExpenseRate  
 Interest & Fee Income Earned     
   Total Earning Assets (FTE)$5,243,783 $40,932 3.11%  
   Total Loans (FTE) 1,116,446  14,206 5.05%  
   Commercial Loans (FTE) 219,710  2,821 5.09%  
   Commercial RE Loans  568,892  7,748 5.40%  
   Consumer Loans 327,844  3,637 4.41%  
   Total Investments (FTE) 3,792,781  25,330 2.67%  
   Total Interest-Bearing Cash 334,556  1,396 1.63%  
       
 Interest Expense Paid     
   Total Earning Assets  5,243,783  451 0.03%  
   Total Interest-Bearing Liabilities 2,599,703  451 0.07%  
   Total Interest-Bearing Deposits 2,559,937  444 0.07%  
   Interest-Bearing Transaction 922,772  89 0.04%  
   Savings 1,464,206  215 0.06%  
   Time less than $100K 97,645  60 0.24%  
   Time greater than $100K 75,314  80 0.42%  
   Total Short-Term Borrowings  39,766  7 0.08%  
       
 Net Interest Income and      
 Margin (FTE) $40,481 3.08%  
       
  Q4'2018  
  AverageIncome/Yield (a) /  
  VolumeExpenseRate  
       
 Interest & Fee Income Earned     
   Total Earning Assets (FTE)$5,270,708 $40,802 3.10%  
   Total Loans (FTE) 1,189,744  14,894 4.97%  
   Commercial Loans (FTE) 271,165  3,698 5.41%  
   Commercial RE Loans  570,059  7,607 5.29%  
   Consumer Loans 348,520  3,589 4.09%  
   Total Investments (FTE) 3,692,951  23,916 2.59%  
   Total Interest-Bearing Cash 388,013  1,992 2.23%  
       
 Interest Expense Paid     
   Total Earning Assets  5,270,708  514 0.04%  
   Total Interest-Bearing Liabilities 2,691,370  514 0.08%  
   Total Interest-Bearing Deposits 2,637,727  506 0.08%  
   Interest-Bearing Transaction 927,676  124 0.05%  
   Savings 1,510,358  227 0.06%  
   Time less than $100K 113,552  70 0.24%  
   Time greater than $100K 86,141  85 0.39%  
   Total Short-Term Borrowings  53,643  8 0.06%  
       
 Net Interest Income and     
 Margin (FTE) $40,288 3.06%  
       
6. Noninterest Income.     
  (dollars in thousands except per-share amounts) 
    %  
  Q4'2019Q4'2018ChangeQ3'2019 
       
 Service Charges on Deposits$4,374 $4,496 -2.7%$4,510  
 Merchant Processing Services 2,424  2,440 -0.7% 2,494  
 Debit Card Fees 1,568  1,685 -6.9% 1,641  
 Trust Fees 764  737 3.8% 733  
 ATM Processing Fees 696  703 -1.0% 725  
 Other Service Fees 513  620 -17.3% 580  
 Financial Services Commissions 122  112 9.7% 75  
 Securities Gains 167  14 n/m -  
 Other Income 1,104  1,090 1.3% 1,051  
 Total Noninterest Income$11,732 $11,897 -1.4%$11,809  
       
   Total Revenue (FTE)$52,213 $52,185 0.1%$52,158  
   Noninterest Income/Revenue (FTE) 22.5% 22.8%  22.6% 
   Service Charges/Avg. Deposits (a) 0.36% 0.36%  0.38% 
   Total Revenues (FTE) Per Avg.      
 Common Share (a)$7.66 $7.75 -1.1%$7.67  
       
    %  
  12/31'19YTD12/31'18YTDChange  
       
 Service Charges on Deposits$17,882 $18,508 -3.4%  
 Merchant Processing Services 10,132  9,630 5.2%  
 Debit Card Fees 6,357  6,643 -4.3%  
 Trust Fees 2,963  2,938 0.9%  
 ATM Processing Fees 2,776  2,752 0.9%  
 Other Service Fees 2,255  2,567 -12.2%  
 Life Insurance Gains 433  585 -26.0%  
 Financial Services Commissions 392  499 -21.4%  
 Securities Gains (Losses) 217  (52)n/m   
 Other Income 4,001  4,079 -1.9%  
 Total Noninterest Income$47,408 $48,149 -1.5%  
       
   Total Revenue (FTE)$208,814 $203,559 2.6%  
   Noninterest Income/Revenue (FTE) 22.7% 23.7%   
   Service Charges/Avg. Deposits 0.37% 0.38%   
   Total Revenues (FTE) Per Avg.      
 Common Share$7.75 $7.64 1.4%  
       
7. Noninterest Expense.     
  (dollars in thousands) 
    %  
  Q4'2019Q4'2018ChangeQ3'2019 
       
 Salaries & Benefits$12,297 $13,055 -5.8%$12,559  
 Occupancy and Equipment 5,077  5,314 -4.5% 5,199  
 Outsourced Data Processing 2,361  2,299 2.7% 2,374  
 Professional Fees 674  565 19.3% 645  
 Courier Service 529  446 18.6% 456  
 Amortization of      
   Identifiable Intangibles 73  447 -83.7% 76  
 Other Operating 3,198  3,661 -12.6% 2,724  
 Total Noninterest Expense$24,209 $25,787 -6.1%$24,033  
       
 Noninterest Expense/     
   Avg. Earning Assets (a) 1.83% 1.94%  1.84% 
 Noninterest Expense/Revenues (FTE) 46.4% 49.4%  46.1% 
       
    %  
  12/31'19YTD12/31'18YTDChange  
       
 Salaries & Benefits$51,054 $53,007 -3.7%  
 Occupancy and Equipment 20,240  19,679 2.9%  
 Outsourced Data Processing 9,471  9,229 2.6%  
 Professional Fees 2,465  2,842 -13.3%  
 Courier Service 1,878  1,779 5.6%  
 Loss Contingency (1) 553  3,500 n/m   
 Amortization of      
   Identifiable Intangibles 538  1,921 -72.0%  
 Other Operating 12,787  14,959 -14.5%  
 Total Noninterest Expense$98,986 $106,916 -7.4%  
       
 Noninterest Expense/     
   Avg. Earning Assets 1.91% 2.05%   
 Noninterest Expense/Revenues (FTE) 47.4% 52.5%   
       
8. Allowance for Loan Losses.     
  (dollars in thousands) 
    %  
  Q4'2019Q4'2018ChangeQ3'2019 
       
 Average Total Loans$1,116,446 $1,189,744 -6.2%$1,142,668  
       
 Allowance for Loan Loss (ALL)     
 Beginning of Period $19,828 $22,027 -10.0%$20,117  
 Provision for Loan Losses  -  - n/m  -  
 Net ALL Losses (344) (676)n/m  (289) 
 ALL End of Period$19,484 $21,351 -8.7%$19,828  
 Gross ALL Recoveries /      
 Gross ALL Losses  71% 44%  72% 
 Net ALL Losses /      
 Avg. Total Loans (a)  0.12% 0.23%  0.10% 
    %  
  12/31'19YTD12/31'18YTDChange  
       
 Average Total Loans$1,161,779 $1,209,167 -3.9%  
       
 Allowance for Loan Loss (ALL)     
 Beginning of Period $21,351 $23,009 -7.2%  
 Provision for Loan Losses  -  - n/m   
 Net ALL Losses (1,867) (1,658)n/m   
 ALL End of Period$19,484 $21,351 -8.7%  
 Gross ALL Recoveries /      
 Gross ALL Losses  59% 66%   
 Net ALL Losses /      
 Avg. Total Loans  0.16% 0.14%   
       
9. Credit Quality.     
  (dollars in thousands) 
    %  
  12/31/1912/31/18Change9/30/19 
 Nonperforming Loans:     
   Nonperforming Nonaccrual$659 $998 -34.0%$633  
   Performing Nonaccrual 3,781  3,870 -2.3% 3,670  
 Total Nonaccrual Loans 4,440  4,868 -8.8% 4,303  
 90+ Days Past Due Accruing Loans 440  551 -20.1% 351  
 Total 4,880  5,419 -9.9% 4,654  
 Repossessed Loan Collateral  43  350 -87.6% 43  
  Total Nonperforming Assets$4,923 $5,769 -14.7%$4,697  
       
 Total Loans Outstanding $1,126,664 $1,207,202 -6.7%$1,133,229  
       
 Total Assets $5,619,555 $5,568,526 0.9%$5,616,055  
       
 Loans:     
 Allowance for Loan Losses$19,484 $21,351 -8.7%$19,828  
 Allowance/Loans 1.73% 1.77%  1.75% 
 Nonperforming Loans/Total Loans 0.43% 0.45%  0.41% 
       
10. Capital.     
  (in thousands, except per-share amounts) 
    %  
  12/31/1912/31/18Change9/30/19 
       
 Shareholders' Equity$731,417 $615,591 18.8%$713,378  
 Total Assets 5,619,555  5,568,526 0.9% 5,616,055  
 Shareholders' Equity/     
   Total Assets 13.02% 11.05%  12.70% 
 Shareholders' Equity/     
   Total Loans 64.92% 50.99%  62.95% 
 Tangible Common Equity Ratio 11.07% 9.04%  10.75% 
 Common Shares Outstanding 27,062  26,730 1.2% 27,014  
 Common Equity Per Share$27.03 $23.03 17.4%$26.41  
 Market Value Per Common Share$67.77 $55.68 21.7%$62.18  
       
 Share Repurchase Programs     
  (shares in thousands) 
    %  
  Q4'2019Q4'2018ChangeQ3'2019 
       
 Total Shares Repurchased -  - n/m  -  
   Average Repurchase Price $-  $- n/m  $-  
 Net Shares Issued (48) (3)n/m  (52) 
       
    %  
  12/31'19YTD12/31'18YTDChange  
       
 Total Shares Repurchased 8  9 n/m   
   Average Repurchase Price$61.98 $58.46 n/m   
 Net Shares Issued (332) (305)n/m   
       
11. Period-End Balance Sheets.     
  (unaudited, dollars in thousands) 
    %  
  12/31/1912/31/18Change9/30/19 
 Assets:     
   Cash and Due from Banks$373,421 $420,284 -11.2%$415,639  
       
   Investment Securities:     
   Equity Securities -  1,747 n/m  -  
   Debt Securities Available For Sale 3,078,846  2,654,670 16.0% 2,983,767  
   Debt Securities Held to Maturity 738,072  984,609 -25.0% 793,216  
       
   Loans 1,126,664  1,207,202 -6.7% 1,133,229  
   Allowance For Loan Losses (19,484) (21,351)-8.7% (19,828) 
   Total Loans, net 1,107,180  1,185,851 -6.6% 1,113,401  
       
   Other Real Estate Owned 43  350 -87.6% 43  
   Premises and Equipment, net 34,597  34,507 0.3% 34,080  
   Identifiable Intangibles, net 1,391  1,929 -27.9% 1,464  
   Goodwill  121,673  121,673 0.0% 121,673  
   Other Assets 164,332  162,906 0.9% 152,772  
       
 Total Assets$5,619,555 $5,568,526 0.9%$5,616,055  
       
 Liabilities and Shareholders' Equity:     
   Deposits:     
   Noninterest-Bearing$2,240,112 $2,243,251 -0.1%$2,265,640  
   Interest-Bearing Transaction 931,888  929,346 0.3% 910,566  
   Savings 1,471,284  1,498,991 -1.8% 1,445,210  
   Time 169,337  195,251 -13.3% 175,207  
   Total Deposits 4,812,621  4,866,839 -1.1% 4,796,623  
       
   Short-Term Borrowed Funds 30,928  51,247 -39.6% 45,646  
   Other Liabilities 44,589  34,849 27.9% 60,408  
 Total Liabilities 4,888,138  4,952,935 -1.3% 4,902,677  
       
 Shareholders' Equity:     
   Common Equity:     
   Paid-In Capital 466,231  449,746 3.7% 463,424  
   Accumulated Other     
   Comprehensive Income (Loss) 26,051  (39,996)n/m  20,454  
   Retained Earnings 239,135  205,841 16.2% 229,500  
 Total Shareholders' Equity 731,417  615,591 18.8% 713,378  
       
 Total Liabilities and      
   Shareholders' Equity$5,619,555 $5,568,526 0.9%$5,616,055  
       
12. Income Statements.     
  (unaudited, in thousands except per-share amounts) 
    %  
  Q4'2019Q4'2018ChangeQ3'2019 
 Interest & Fee Income:     
   Loans$14,103 $14,783 -4.6%$14,431  
   Investment Securities:     
   Equity Securities103  98 5.0% 92  
   Debt Securities Available for Sale20,067  16,865 19.0% 18,736  
   Debt Securities Held to Maturity4,209  5,710 -26.3% 4,535  
   Interest-Bearing Cash1,396  1,992 -29.9% 1,901  
 Total Interest & Fee Income39,878  39,448 1.1% 39,695  
       
 Interest Expense:     
   Transaction Deposits 89  124 -28.2% 92  
   Savings Deposits 215  227 -5.3% 210  
   Time Deposits 140  155 -9.6% 145  
   Short-Term Borrowed Funds 7  8 -16.5% 8  
 Total Interest Expense 451  514 -12.2% 455  
       
 Net Interest Income 39,427  38,934 1.3% 39,240  
       
 Provision for Loan Losses -  - n/m  -  
       
 Noninterest Income:     
   Service Charges  4,374  4,496 -2.7% 4,510  
   Merchant Processing Services 2,424  2,440 -0.7% 2,494  
   Debit Card Fees 1,568  1,685 -6.9% 1,641  
   Trust Fees 764  737 3.8% 733  
   ATM Processing Fees 696  703 -1.0% 725  
   Other Service Fees 513  620 -17.3% 580  
   Financial Services Commissions 122  112 9.7% 75  
   Securities Gains 167  14 n/m  -  
   Other 1,104  1,090 1.3% 1,051  
 Total Noninterest Income 11,732  11,897 -1.4% 11,809  
       
 Noninterest Expense:     
   Salaries and Benefits 12,297  13,055 -5.8% 12,559  
   Occupancy and Equipment 5,077  5,314 -4.5% 5,199  
   Outsourced Data Processing 2,361  2,299 2.7% 2,374  
   Professional Fees 674  565 19.3% 645  
   Courier Service 529  446 18.6% 456  
   Amortization of Identifiable Intangibles 73  447 -83.7% 76  
   Other 3,198  3,661 -12.6% 2,724  
 Total Noninterest Expense 24,209  25,787 -6.1% 24,033  
       
 Income Before Income Taxes 26,950  25,044 7.6% 27,016  
 Income Tax Provision 6,222  5,989 3.9% 6,626  
 Net Income$20,728 $19,055 8.8%$20,390  
       
 Average Common Shares Outstanding 27,050  26,729 1.2% 26,986  
 Diluted Common Shares Outstanding 27,094  26,815 1.0% 27,027  
       
 Per Common Share Data:     
   Basic Earnings$0.77 $0.71 8.5%$0.76  
   Diluted Earnings 0.77  0.71 7.0% 0.75  
   Dividends Paid 0.41  0.40 2.5% 0.41  
    %  
  12/31'19YTD12/31'18YTDChange  
 Interest & Fee Income:     
   Loans$58,153 $59,030 -1.5%  
   Investment Securities:     
   Equity Securities 392  354 10.9%  
   Debt Securities Available for Sale 74,147  60,383 22.8%  
   Debt Securities Held to Maturity 18,997  24,031 -20.9%  
   Interest-Bearing Cash 6,993  7,925 -11.8%  
 Total Interest & Fee Income 158,682  151,723 4.6%  
       
 Interest Expense:     
   Transaction Deposits 422  373 13.2%  
   Savings Deposits 852  902 -5.5%  
   Time Deposits 580  647 -10.3%  
   Short-Term Borrowed Funds 34  37 -6.9%  
 Total Interest Expense 1,888  1,959 -3.6%  
       
 Net Interest Income 156,794  149,764 4.7%  
       
 Provision for Loan Losses -  - n/m   
       
 Noninterest Income:     
   Service Charges  17,882  18,508 -3.4%  
   Merchant Processing Services 10,132  9,630 5.2%  
   Debit Card Fees 6,357  6,643 -4.3%  
   Trust Fees 2,963  2,938 0.9%  
   ATM Processing Fees 2,776  2,752 0.9%  
   Other Service Fees 2,255  2,567 -12.2%  
   Life Insurance Gains 433  585 -26.0%  
   Financial Services Commissions 392  499 -21.4%  
  Securities Gains (Losses) 217  (52)n/m   
   Other 4,001  4,079 -1.9%  
 Total Noninterest Income 47,408  48,149 -1.5%  
       
 Noninterest Expense:     
   Salaries and Benefits 51,054  53,007 -3.7%  
   Occupancy and Equipment 20,240  19,679 2.9%  
   Outsourced Data Processing 9,471  9,229 2.6%  
   Professional Fees 2,465  2,842 -13.3%  
   Courier Service 1,878  1,779 5.6%  
   Loss Contingency (1) 553  3,500 n/m   
   Amortization of Identifiable Intangibles 538  1,921 -72.0%  
   Other 12,787  14,959 -14.5%  
 Total Noninterest Expense 98,986  106,916 -7.4%  
       
 Income Before Income Taxes 105,216  90,997 15.6%  
 Income Tax Provision 24,827  19,433 27.8%  
 Net Income$80,389 $71,564 12.3%  
       
 Average Common Shares Outstanding 26,956  26,649 1.2%  
 Diluted Common Shares Outstanding 27,006  26,756 0.9%  
       
 Per Common Share Data:     
 Basic Earnings$2.98 $2.69 10.8%  
 Diluted Earnings 2.98  2.67 11.6%  
 Dividends Paid 1.63  1.60 1.9%  
       
       
 Footnotes and Abbreviations:     
 (1) In the second quarter 2019 and third quarter 2018, the Company recorded $553 thousand and $3.5 million in loss contingencies, respectively. The loss contingencies recorded in the second quarter 2019 include a $301 thousand increase in estimated customer refunds of revenue recognized prior to 2018 and a $252 thousand loss settlement to dismiss a lawsuit. The loss contingency recorded in the third quarter 2018 was the result of a mediated settlement to dismiss a lawsuit. The Company does not anticipate additional losses for these matters. 
 (FTE) Fully Taxable Equivalent. The Company presents its net interest margin and net interest income on a FTE basis using the current statutory federal tax rate. Management believes the FTE basis is valuable to the reader because the Company’s loan and investment securities portfolios contain a relatively large portion of municipal loans and securities that are federally tax exempt. The Company’s tax exempt loans and securities composition may not be similar to that of other banks, therefore in order to reflect the impact of the federally tax exempt loans and securities on the net interest margin and net interest income for comparability with other banks, the Company presents its net interest margin and net interest income on a FTE basis. 
 (a) Annualized 
 Certain amounts in prior periods have been reclassified to conform to the current presentation.