Westamerica Bancorporation Reports Third Quarter 2017 Financial Results

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| Source: Westamerica Bancorporation

SAN RAFAEL, Calif., Oct. 19, 2017 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, generated net income for the third quarter 2017 of $15.0 million and diluted earnings per common share ("EPS") of $0.57, compared to second quarter 2017 net income of $15.8 million and EPS of $0.60 and third quarter 2016 net income of $15.6 million and EPS of $0.61. Financial results for both the second quarter 2017 and third quarter 2016 include a reversal of provision for loan losses of $1.9 million and $3.2 million, respectively.

"Third quarter 2017 net income benefited from higher noninterest income and lower noninterest expense. Merchant processing fees and debit card fees have been growing, and we have been successful in further reducing our operating costs.  Asset quality remained very high with nonperforming assets totaling only $7.6 million at September 30, 2017,” said Chairman, President and CEO David Payne.  “Westamerica generated an annualized 10 percent return on average shareholders’ common equity for the third 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 3.10 percent for the third quarter 2017, compared to 3.12 percent for the second quarter 2017, and 3.21 percent for the third quarter 2016. Net interest income on a fully taxable equivalent basis was $35.7 million for the third quarter 2017, compared to $35.8 million for the second quarter 2017, and $36.2 million for the third 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 third quarter 2017, compared to 0.04 percent for the second quarter 2017 and 0.05 percent for the third 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 third quarter 2017.

The Company recognized no provision for loan losses for the third quarter 2017 given stable nonperforming loan volumes and other credit quality attributes. The Company recognized a reversal of provision for loan losses of $1.9 million for the second quarter 2017 given realization of net recoveries of prior loan losses of $1.1 million and improvements in credit quality. The Company recognized a reversal of provision for loan losses of $3.2 million for the third quarter 2016 given realization of net recoveries of prior loan losses of $649 thousand and significant declines in the volume of nonperforming loans. At September 30, 2017, the allowance for loan losses totaled $23.6 million.

Noninterest income for the third quarter 2017 totaled $12.5 million, compared to $12.1 million for the second quarter 2017 and $11.6 million for the third quarter 2016. The increase in third quarter 2017 noninterest income relative to the prior quarters was primarily due to higher merchant processing fees and debit card fees.

Noninterest expense for the third quarter 2017 totaled $24.1 million, compared to $24.4 million for the second quarter 2017 and $26.1 million for the third quarter 2016. The $2 million reduction in noninterest expense from the third quarter 2016 to the third quarter 2017 was due to reductions in professional fees, limited partnership operating losses, intangible amortization, and correspondent service charges, offset in part by higher outsourced automation and other real estate owned expenses.

At September 30, 2017, Westamerica Bancorporation's tangible common equity-to-asset ratio was 8.98 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

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, 2016 filed on Form 10-K and quarterly report for the quarter ended June 30, 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 October 19, 2017  
WESTAMERICA BANCORPORATION    
FINANCIAL HIGHLIGHTS     
September 30, 2017     
       
1. Net Income Summary.     
  (in thousands except per-share amounts) 
    %  
  Q3'17Q3'16ChangeQ2'17 
       
 Net Interest and Fee Income (FTE)$35,680  $36,176  -1.4%$35,764   
 Reversal of Provision for Loan Losses   -     (3,200)n/m    (1,900) 
 Noninterest Income 12,548   11,598  8.2% 12,123   
 Noninterest Expense 24,114   26,088  -7.6% 24,396   
 Income Before Taxes (FTE) 24,114   24,886  -3.1% 25,391   
 Income Tax Provision (FTE) 9,097   9,258  -1.7% 9,592   
 Net Income$15,017  $15,628  -3.9%$15,799   
       
 Average Common Shares Outstanding 26,309   25,641  2.6% 26,299   
 Diluted Average Common Shares 26,404   25,687  2.8% 26,402   
       
 Operating Ratios:     
 Basic Earnings Per Common Share$0.57  $0.61  -6.6%$0.60   
 Diluted Earnings Per Common Share 0.57   0.61  -6.6% 0.60   
 Return On Assets (a) 1.09% 1.18%  1.18% 
 Return On Common Equity (a) 9.9% 11.4%  10.7% 
 Net Interest Margin (FTE) (a) 3.10% 3.21%  3.12% 
 Efficiency Ratio (FTE) 50.0% 54.6%  50.9% 
       
 Dividends Paid Per Common Share$0.39  $0.39  0.0%$0.39   
 Common Dividend Payout Ratio    68% 64%  65% 
       
    %  
  9/30'17YTD9/30'16YTDChange  
       
 Net Interest and Fee Income (FTE)$107,474  $109,118  -1.5%  
 Reversal of Provision for Loan Losses   (1,900)   (3,200)n/m   
 Noninterest Income 36,328   35,029  3.7%  
 Noninterest Expense 73,125   77,175  -5.2%  
 Income Before Taxes (FTE) 72,577   70,172  3.4%  
 Income Tax Provision (FTE) 26,712   25,772  3.6%  
 Net Income$45,865  $44,400  3.3%  
       
 Average Common Shares Outstanding 26,260   25,558  2.7%  
 Diluted Average Common Shares 26,379   25,595  3.1%  
       
 Operating Ratios:     
 Basic Earnings Per Common Share$1.75  $1.74  0.6%  
 Diluted Earnings Per Common Share 1.74   1.73  0.6%  
 Return On Assets (a) 1.13% 1.14%   
 Return On Common Equity (a) 10.4% 11.0%   
 Net Interest Margin (FTE) (a) 3.12% 3.27%   
 Efficiency Ratio (FTE) 50.9% 53.5%   
       
 Dividends Paid Per Common Share$1.17  $1.17  0.0%  
 Common Dividend Payout Ratio    67% 68%   
       
2. Net Interest Income.     
  (dollars in thousands) 
    %  
  Q3'17Q3'16ChangeQ2'17 
       
 Interest and Fee Income (FTE)$36,153  $36,699  -1.5%$36,240   
 Interest Expense 473   523  -9.5% 476   
 Net Interest and Fee Income (FTE)$35,680  $36,176  -1.4%$35,764   
       
 Average Earning Assets$4,587,848  $4,489,317  2.2%$4,598,296   
 Average Interest-     
   Bearing Liabilities 2,687,620   2,616,357  2.7% 2,692,447   
       
 Yield on Earning Assets (FTE) (a) 3.14% 3.26%  3.16% 
 Cost of Funds (a) 0.04% 0.05%  0.04% 
 Net Interest Margin (FTE) (a) 3.10% 3.21%  3.12% 
 Interest Expense/     
   Interest-Bearing Liabilities (a) 0.07% 0.08%  0.07% 
 Net Interest Spread (FTE) (a) 3.07% 3.18%  3.09% 
       
    %  
  9/30'17YTD9/30'16YTDChange  
       
 Interest and Fee Income (FTE)$108,903  $110,734  -1.7%  
 Interest Expense 1,429   1,616  -11.6%  
 Net Interest and Fee Income (FTE)$107,474  $109,118  -1.5%  
       
 Average Earning Assets$4,601,931  $4,448,261  3.5%  
 Average Interest-     
   Bearing Liabilities 2,694,785   2,605,584  3.4%  
       
 Yield on Earning Assets (FTE) (a) 3.16% 3.32%   
 Cost of Funds (a) 0.04% 0.05%   
 Net Interest Margin (FTE) (a) 3.12% 3.27%   
 Interest Expense/     
   Interest-Bearing Liabilities (a) 0.07% 0.08%   
 Net Interest Spread (FTE) (a) 3.09% 3.24%   
       
3. Loans & Other Earning Assets.     
  (average volume, dollars in thousands) 
    %  
  Q3'17Q3'16ChangeQ2'17 
       
 Total Assets$5,441,612  $5,253,502  3.6%$5,385,085   
 Total Earning Assets 4,587,848   4,489,317  2.2% 4,598,296   
 Total Loans 1,287,740   1,386,186  -7.1% 1,333,135   
   Commercial Loans 324,727   343,727  -5.5% 349,979   
   Commercial RE Loans  566,794   572,044  -0.9% 566,570   
   Consumer Loans 396,219   470,415  -15.8% 416,586   
 Total Investment Securities 3,300,108   3,103,131  6.3% 3,265,161   
   Available For Sale (Market) 2,066,568   1,660,680  24.4% 1,982,997   
   Held To Maturity 1,233,540   1,442,451  -14.5% 1,282,164   
    Unrealized Gain 4,039   29,100  n/m  3,438   
       
 Loans/Deposits 27.3% 30.2%  28.6% 
       
    %  
  9/30'17YTD9/30'16YTDChange  
       
 Total Assets$5,407,661  $5,204,418  3.9%  
 Total Earning Assets 4,601,931   4,448,261  3.5%  
 Total Loans 1,325,128   1,447,061  -8.4%  
   Commercial Loans 343,091   356,781  -3.8%  
   Commercial RE Loans  563,980   604,741  -6.7%  
   Consumer Loans 418,057   485,539  -13.9%  
 Total Investment Securities 3,276,803   3,001,200  9.2%  
   Available For Sale (Market) 1,997,324   1,594,253  25.3%  
   Held To Maturity 1,279,479   1,406,947  -9.1%  
    Unrealized Gain 4,039   29,100  n/m   
       
 Loans/Deposits 28.2% 31.8%   
       
4. Deposits, Other Interest-Bearing Liabilities & Equity.   
  (average volume, dollars in thousands) 
    %  
  Q3'17Q3'16ChangeQ2'17 
       
 Total Deposits$4,714,579  $4,588,762  2.7%$4,669,424   
   Noninterest Demand  2,103,042   2,041,045  3.0% 2,048,155   
   Interest Bearing Transaction 891,532   850,215  4.9% 880,470   
   Savings 1,475,969   1,427,247  3.4% 1,491,283   
   Time greater than $100K 108,673   118,113  -8.0% 110,762   
   Time less than $100K 135,363   152,142  -11.0% 138,754   
 Total Short-Term Borrowings 76,083   68,640  10.8% 71,178   
 Shareholders' Equity 599,473   545,771  9.8% 593,028   
       
 Demand Deposits/     
   Total Deposits 44.6% 44.5%  43.9% 
 Transaction & Savings      
   Deposits / Total Deposits 94.8% 94.1%  94.7% 
       
    %  
  9/30'17YTD9/30'16YTDChange  
       
 Total Deposits$4,692,330  $4,552,819  3.1%  
   Noninterest Demand  2,069,521   2,010,058  3.0%  
   Interest Bearing Transaction 884,171   859,437  2.9%  
   Savings 1,489,643   1,406,338  5.9%  
   Time greater than $100K 110,512   120,418  -8.2%  
   Time less than $100K 138,483   156,568  -11.6%  
 Total Short-Term Borrowings 71,976   62,823  14.6%  
 Shareholders' Equity 591,691   537,010  10.2%  
       
 Demand Deposits/     
   Total Deposits 44.1% 44.1%   
 Transaction & Savings      
   Deposits / Total Deposits 94.7% 93.9%   
       
5. Interest Yields Earned & Rates Paid.    
  (dollars in thousands)  
  Q3'17  
  AverageIncome/Yield (a) /  
  VolumeExpenseRate  
       
 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%  
       
  Q3'16  
  AverageIncome/Yield (a) /  
  VolumeExpenseRate  
       
 Interest & Fee Income Earned     
   Total Earning Assets (FTE)$4,489,317  $36,699  3.26%  
   Total Loans (FTE) 1,386,186   17,260  4.95%  
    Commercial Loans (FTE) 343,727   4,302  4.98%  
    Commercial RE Loans  572,044   8,832  6.14%  
    Consumer Loans 470,415   4,126  3.49%  
   Total Investments (FTE) 3,103,131   19,439  2.51%  
       
 Interest Expense Paid     
   Total Earning Assets  4,489,317   523  0.05%  
   Total Interest-Bearing Liabilities 2,616,357   523  0.08%  
   Total Interest-Bearing Deposits 2,547,717   512  0.08%  
    Interest-Bearing Transaction 850,215   64  0.03%  
    Savings 1,427,247   229  0.06%  
    Time less than $100K 152,142   95  0.25%  
    Time greater than $100K 118,113   124  0.42%  
   Total Short-Term Borrowings  68,640   11  0.06%  
       
 Net Interest Income and     
 Margin (FTE) $36,176  3.21%  
       
6. Noninterest Income.     
  (dollars in thousands except per-share amounts) 
    %  
  Q3'17Q3'16ChangeQ2'17 
       
 Service Charges on Deposits$4,989  $5,303  -5.9%$4,945   
 Merchant Processing Services 2,153   1,532  40.6% 2,052   
 Debit Card Fees 1,784   1,587  12.4% 1,586   
 Other Service Fees 652   671  -2.9% 662   
 ATM Processing Fees 684   600  14.0% 654   
 Trust Fees 718   686  4.7% 716   
 Financial Services Commissions 148   118  25.4% 142   
 Other Income 1,420   1,101  29.1% 1,366   
 Total Noninterest Income$12,548  $11,598  8.2%$12,123   
       
   Total Revenue (FTE)$48,228  $47,774  1.0%$47,887   
   Noninterest Income/Revenue (FTE) 26.0% 24.3%  25.3% 
   Service Charges/Avg. Deposits (a) 0.42% 0.46%  0.42% 
   Total Revenues (FTE) Per Avg.      
 Common Share (a)$7.27  $7.41  -1.9%$7.30   
       
    %  
  9/30'17YTD9/30'16YTDChange  
       
 Service Charges on Deposits$14,857  $15,790  -5.9%  
 Merchant Processing Services 6,080   4,699  29.4%  
 Debit Card Fees 4,851   4,724  2.7%  
 Other Service Fees 1,964   1,951  0.7%  
 ATM Processing Fees 1,914   1,860  2.9%  
 Trust Fees 2,136   2,004  6.6%  
 Financial Services Commissions 484   411  18.0%  
 Other Income 4,042   3,590  12.6%  
 Total Noninterest Income$36,328  $35,029  3.7%  
       
   Total Revenue (FTE)$143,802  $144,147  -0.2%  
   Noninterest Income/Revenue (FTE) 25.3% 24.3%   
   Service Charges/Avg. Deposits (a) 0.42% 0.46%   
   Total Revenues (FTE) Per Avg.      
 Common Share (a)$7.32  $7.53  -2.8%  
       
7. Noninterest Expense.     
  (dollars in thousands) 
    %  
  Q3'17Q3'16ChangeQ2'17 
       
 Salaries & Benefits$12,816  $13,063  -1.9%$12,981   
 Occupancy 3,665   3,749  -2.2% 3,509   
 Outsourced Data Processing 2,383   2,114  12.7% 2,188   
 Amortization of      
   Identifiable Intangibles 760   867  -12.4% 762   
 Professional Fees 512   1,693  -69.8% 410   
 Furniture & Equipment 1,242   1,211  2.5% 1,267   
 Other Real Estate Owned 221   (206)n/m  (126) 
 Courier Service 451   451  0.0% 438   
 Other Operating 2,064   3,146  -34.4% 2,967   
 Total Noninterest Expense$24,114  $26,088  -7.6%$24,396   
       
 Noninterest Expense/     
   Avg. Earning Assets (a) 2.09% 2.31%  2.13% 
 Noninterest Expense/Revenues (FTE) 50.0% 54.6%  50.9% 
       
    %  
  9/30'17YTD9/30'16YTDChange  
       
 Salaries & Benefits$38,867  $39,067  -0.5%  
 Occupancy 10,807   10,546  2.5%  
 Outsourced Data Processing 6,710   6,375  5.3%  
 Amortization of      
   Identifiable Intangibles 2,322   2,642  -12.1%  
 Professional Fees 1,533   3,183  -51.8%  
 Furniture & Equipment 3,764   3,611  4.2%  
 Other Real Estate Owned 54   (487)n/m   
 Courier Service 1,310   1,458  -10.2%  
 Other Operating 7,758   10,780  -28.0%  
 Total Noninterest Expense$73,125  $77,175  -5.2%  
       
 Noninterest Expense/     
   Avg. Earning Assets (a) 2.12% 2.32%   
 Noninterest Expense/Revenues (FTE) 50.9% 53.5%   
       
8. Allowance for Loan Losses.     
  (dollars in thousands) 
    %  
  Q3'17Q3'16ChangeQ2'17 
       
 Average Total Loans$1,287,740  $1,386,186  -7.1%$1,333,135   
       
 Allowance for Loan Loss (ALL)     
 Beginning of Period $24,103  $28,910  -16.6%$24,919   
 Reversal of Provision for Loan Losses      -     (3,200)n/m    (1,900) 
 Net ALL (Losses) Recoveries (475) 649  n/m  1,084   
 ALL End of Period$23,628  $26,359  -10.4%$24,103   
 ALL Recoveries/Gross ALL Losses    53% 134%  158% 
       
 Net ALL Losses (Recoveries) /     
 Avg. Total Loans (a) 0.15% -0.19%  -0.33% 
       
    %  
  9/30'17YTD9/30'16YTDChange  
       
 Average Total Loans$1,325,128  $1,447,061  -8.4%  
       
 Allowance for Loan Loss (ALL)     
 Beginning of Period $25,954  $29,771  -12.8%  
 Reversal of Provision for Loan Losses      (1,900)   (3,200)n/m   
 Net ALL Losses (426) (212)n/m   
 ALL End of Period$23,628  $26,359  -10.4%  
 ALL Recoveries/Gross ALL Losses    91% 96%   
       
 Net ALL Losses/     
 Avg. Total Loans (a) 0.04% 0.02%   
       
9. Credit Quality.     
  (dollars in thousands) 
    %  
  9/30/179/30/16Change6/30/17 
       
 Nonperforming Loans (1):     
   Nonperforming Nonaccrual$1,498  $1,861  -19.5%$2,215   
   Performing Nonaccrual   4,285     4,432  -3.3%   4,480   
 Total Nonaccrual Loans 5,783   6,293  -8.1% 6,695   
 90+ Days Past Due Accruing Loans 434   487  -10.9% 186   
 Total 6,217   6,780  -8.3% 6,881   
 Repossessed Loan Collateral (1) 1,426   3,032  -53.0% 1,645   
  Total Nonperforming Assets (1)$7,643  $9,812  -22.1%$8,526   
       
 Total Loans Outstanding $1,284,782  $1,364,329  -5.8%$1,318,341   
       
 Total Assets $5,445,808  $5,306,778  2.6%$5,393,350   
       
 Loans:     
 Allowance for Loan Losses$23,628  $26,359  -10.4%$24,103   
 Allowance/Loans 1.84% 1.93%  1.83% 
 Nonperforming Loans/Total Loans 0.48% 0.50%  0.52% 
       
10. Capital.     
  (in thousands, except per-share amounts) 
    %  
  9/30/179/30/16Change6/30/17 
       
 Shareholders' Equity$603,957  $562,996  7.3%$595,594   
 Total Assets 5,445,808   5,306,778  2.6% 5,393,350   
       
 Shareholders' Equity/     
   Total Assets 11.09% 10.61%  11.04% 
 Shareholders' Equity/     
   Total Loans 47.01% 41.27%  45.18% 
 Tangible Common Equity Ratio 8.98% 8.37%  8.90% 
 Common Shares Outstanding 26,319   25,665  2.5% 26,304   
 Common Equity Per Share$22.95  $21.94  4.6%$22.64   
 Market Value Per Common Share$59.54  $50.88  17.0%$56.04   
       
 Share Repurchase Programs     
  (shares in thousands) 
    %  
  Q3'17Q3'16ChangeQ2'17 
       
 Total Shares Repurchased   -     -  n/m    6   
   Average Repurchase Price$-  $-  n/m $56.51   
 Net Shares Issued (15) (33)n/m  (21) 
       
    %  
  9/30'17YTD9/30'16YTDChange  
       
 Total Shares Repurchased 6   137  n/m   
   Average Repurchase Price$56.51  $41.94  n/m   
 Net Shares Issued (412) (137)n/m   
       
11. Period-End Balance Sheets.     
  (unaudited, dollars in thousands) 
    %  
  9/30/179/30/16Change6/30/17 
 Assets:     
   Cash and Due from Banks$561,757  $471,367  19.2%$529,362   
       
  Investment Securities:     
   Available For Sale 2,090,477   1,762,408  18.6% 1,976,156   
   Held to Maturity 1,204,240   1,411,019  -14.7% 1,261,321   
       
  Loans 1,284,782   1,364,329  -5.8% 1,318,341   
  Allowance For Loan Losses (23,628) (26,359)-10.4% (24,103) 
  Total Loans, net 1,261,154   1,337,970  -5.7% 1,294,238   
       
  Other Real Estate Owned 1,426   3,032  -53.0% 1,645   
  Premises and Equipment, net 35,507   37,059  -4.2% 35,564   
  Identifiable Intangibles, net 4,605   7,789  -40.9% 5,365   
  Goodwill  121,673   121,673  0.0% 121,673   
  Other Assets 164,969   154,461  6.8% 168,026   
       
 Total Assets$5,445,808  $5,306,778  2.6%$5,393,350   
       
 Liabilities and Shareholders' Equity:     
   Deposits:     
    Noninterest Bearing$2,128,342  $2,064,988  3.1%$2,079,608   
    Interest-Bearing Transaction 873,145   851,885  2.5% 885,516   
    Savings 1,491,168   1,462,860  1.9% 1,470,978   
    Time 241,925   265,137  -8.8% 246,468   
   Total Deposits 4,734,580   4,644,870  1.9% 4,682,570   
       
   Short-Term Borrowed Funds 66,337   56,358  17.7% 75,769   
   Other Liabilities 40,934   42,554  -3.8% 39,417   
 Total Liabilities 4,841,851   4,743,782  2.1% 4,797,756   
       
 Shareholders' Equity:     
   Common Equity:     
    Paid-In Capital 427,188   393,134  8.7% 426,012   
    Accumulated Other     
      Comprehensive (Loss) Income (3,433) 9,001  n/m  (5,864) 
   Retained Earnings 180,202   160,861  12.0% 175,446   
 Total Shareholders' Equity 603,957   562,996  7.3% 595,594   
       
 Total Liabilities and      
   Shareholders' Equity$5,445,808  $5,306,778  2.6%$5,393,350   
       
12. Income Statements.     
  (unaudited, in thousands except per-share amounts) 
    %  
  Q3'17Q3'16ChangeQ2'17 
 Interest & Fee Income:     
   Loans$15,082  $16,968  -11.1%$15,468   
   Investment Securities:     
    Available for Sale 11,347   8,796  29.0% 10,709   
    Held to Maturity 6,716   7,704  -12.8% 6,986   
 Total Interest & Fee Income 33,145   33,468  -1.0% 33,163   
       
 Interest Expense:     
   Transaction Deposits 60   64  -7.5% 57   
   Savings Deposits 220   229  -3.8% 222   
   Time Deposits 181   219  -17.1% 186   
   Short-Term Borrowed Funds 12   11  12.0% 11   
 Total Interest Expense 473   523  -9.5% 476   
       
 Net Interest Income 32,672   32,945  -0.8% 32,687   
       
 Reversal of Provision for Loan Losses   -     (3,200)n/m    (1,900) 
       
 Noninterest Income:     
   Service Charges  4,989   5,303  -5.9% 4,945   
   Merchant Processing Services 2,153   1,532  40.6% 2,052   
   Debit Card Fees 1,784   1,587  12.4% 1,586   
   Other Service Fees 652   671  -2.9% 662   
   ATM Processing Fees 684   600  14.0% 654   
   Trust Fees 718   686  4.7% 716   
   Financial Services Commissions 148   118  25.4% 142   
   Other 1,420   1,101  29.1% 1,366   
 Total Noninterest Income 12,548   11,598  8.2% 12,123   
       
 Noninterest Expense:     
   Salaries and  Benefits 12,816   13,063  -1.9% 12,981   
   Occupancy  3,665   3,749  -2.2% 3,509   
   Outsourced Data Processing 2,383   2,114  12.7% 2,188   
   Amortization of Identifiable Intangibles 760   867  -12.4% 762   
   Professional Fees 512   1,693  -69.8% 410   
   Furniture & Equipment 1,242   1,211  2.5% 1,267   
   Other Real Estate Owned 221   (206)n/m  (126) 
   Courier Service 451   451  0.0% 438   
   Other 2,064   3,146  -34.4% 2,967   
 Total Noninterest Expense 24,114   26,088  -7.6% 24,396   
       
 Income Before Income Taxes 21,106   21,655  -2.5% 22,314   
 Income Tax Provision 6,089   6,027  1.0% 6,515   
 Net Income$15,017  $15,628  -3.9%$15,799   
       
 Average Common Shares Outstanding 26,309   25,641  2.6% 26,299   
 Diluted Common Shares Outstanding 26,404   25,687  2.8% 26,402   
       
 Per Common Share Data:     
   Basic Earnings$0.57  $0.61  -6.6%$0.60   
   Diluted Earnings 0.57   0.61  -6.6% 0.60   
   Dividends Paid 0.39   0.39  0.0% 0.39   
    %  
  9/30'17YTD9/30'16YTDChange  
 Interest & Fee Income:     
   Loans$46,330  $52,904  -12.4%  
   Investment Securities:     
    Available for Sale 32,305   24,855  30.0%  
    Held to Maturity 20,997   23,083  -9.0%  
 Total Interest & Fee Income 99,632   100,842  -1.2%  
       
 Interest Expense:     
   Transaction Deposits 174   201  -13.7%  
   Savings Deposits 665   677  -1.6%  
   Time Deposits 556   708  -21.5%  
   Short-Term Borrowed Funds 34   30  12.1%  
 Total Interest Expense 1,429   1,616  -11.6%  
       
 Net Interest Income 98,203   99,226  -1.0%  
       
 Reversal of Provision for Loan Losses   (1,900)   (3,200)n/m   
       
 Noninterest Income:     
   Service Charges  14,857   15,790  -5.9%  
   Merchant Processing Services 6,080   4,699  29.4%  
   Debit Card Fees 4,851   4,724  2.7%  
   Other Service Fees 1,964   1,951  0.7%  
   ATM Processing Fees 1,914   1,860  2.9%  
   Trust Fees 2,136   2,004  6.6%  
   Financial Services Commissions 484   411  18.0%  
   Other 4,042   3,590  12.6%  
 Total Noninterest Income 36,328   35,029  3.7%  
       
 Noninterest Expense:     
   Salaries and  Benefits 38,867   39,067  -0.5%  
   Occupancy  10,807   10,546  2.5%  
   Outsourced Data Processing 6,710   6,375  5.3%  
   Amortization of Identifiable Intangibles 2,322   2,642  -12.1%  
   Professional Fees 1,533   3,183  -51.8%  
   Furniture & Equipment 3,764   3,611  4.2%  
   Other Real Estate Owned 54   (487)n/m   
   Courier Service 1,310   1,458  -10.2%  
   Other 7,758   10,780  -28.0%  
 Total Noninterest Expense 73,125   77,175  -5.2%  
       
 Income Before Income Taxes 63,306   60,280  5.0%  
 Income Tax Provision 17,441   15,880  9.8%  
 Net Income$45,865  $44,400  3.3%  
       
 Average Common Shares Outstanding 26,260   25,558  2.7%  
 Diluted Common Shares Outstanding 26,379   25,595  3.1%  
       
 Per Common Share Data:     
 Basic Earnings$1.75  $1.74  0.6%  
 Diluted Earnings 1.74   1.73  0.6%  
 Dividends Paid 1.17   1.17  0.0%  
       
 The Company has determined that it will be obligated to provide refunds of revenue
recognized in prior years to customers.
  The Company is not yet able to quantify the
amount of refunds.
  The Company will provide additional information when a
determination of the probable amount of these obligations is made.
  
       
 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.