Source: Westamerica Bancorporation
Westamerica Bancorporation Reports Third Quarter 2017 Financial Results
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) | |||||||||||||
| % | |||||||||||||
| Q3'17 | Q3'16 | Change | Q2'17 | ||||||||||
| 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 | % | |||||||
| % | |||||||||||||
| 9/30'17YTD | 9/30'16YTD | Change | |||||||||||
| 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) | |||||||||||||
| % | |||||||||||||
| Q3'17 | Q3'16 | Change | Q2'17 | ||||||||||
| 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 | % | |||||||
| % | |||||||||||||
| 9/30'17YTD | 9/30'16YTD | Change | |||||||||||
| 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) | |||||||||||||
| % | |||||||||||||
| Q3'17 | Q3'16 | Change | Q2'17 | ||||||||||
| 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 | % | |||||||
| % | |||||||||||||
| 9/30'17YTD | 9/30'16YTD | Change | |||||||||||
| 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) | |||||||||||||
| % | |||||||||||||
| Q3'17 | Q3'16 | Change | Q2'17 | ||||||||||
| 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 | % | |||||||
| % | |||||||||||||
| 9/30'17YTD | 9/30'16YTD | Change | |||||||||||
| 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 | |||||||||||||
| 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 | % | |||||||||
| Q3'16 | |||||||||||||
| Average | Income/ | Yield (a) / | |||||||||||
| Volume | Expense | Rate | |||||||||||
| 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) | |||||||||||||
| % | |||||||||||||
| Q3'17 | Q3'16 | Change | Q2'17 | ||||||||||
| 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 | |||||
| % | |||||||||||||
| 9/30'17YTD | 9/30'16YTD | Change | |||||||||||
| 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) | |||||||||||||
| % | |||||||||||||
| Q3'17 | Q3'16 | Change | Q2'17 | ||||||||||
| 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 | % | |||||||
| % | |||||||||||||
| 9/30'17YTD | 9/30'16YTD | Change | |||||||||||
| 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) | |||||||||||||
| % | |||||||||||||
| Q3'17 | Q3'16 | Change | Q2'17 | ||||||||||
| 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 | % | |||||||
| % | |||||||||||||
| 9/30'17YTD | 9/30'16YTD | Change | |||||||||||
| 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) | |||||||||||||
| % | |||||||||||||
| 9/30/17 | 9/30/16 | Change | 6/30/17 | ||||||||||
| 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) | |||||||||||||
| % | |||||||||||||
| 9/30/17 | 9/30/16 | Change | 6/30/17 | ||||||||||
| 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) | |||||||||||||
| % | |||||||||||||
| Q3'17 | Q3'16 | Change | Q2'17 | ||||||||||
| Total Shares Repurchased | - | - | n/m | 6 | |||||||||
| Average Repurchase Price | $ | - | $ | - | n/m | $ | 56.51 | ||||||
| Net Shares Issued | (15 | ) | (33 | ) | n/m | (21 | ) | ||||||
| % | |||||||||||||
| 9/30'17YTD | 9/30'16YTD | Change | |||||||||||
| 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) | |||||||||||||
| % | |||||||||||||
| 9/30/17 | 9/30/16 | Change | 6/30/17 | ||||||||||
| 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) | |||||||||||||
| % | |||||||||||||
| Q3'17 | Q3'16 | Change | Q2'17 | ||||||||||
| 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 | ||||||||
| % | |||||||||||||
| 9/30'17YTD | 9/30'16YTD | Change | |||||||||||
| 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. | |||||||||||||