Westamerica Bancorporation Reports Second Quarter 2016 Financial Results


SAN RAFAEL, Calif., July 21, 2016 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, generated net income for the second quarter 2016 of $14.5 million and diluted earnings per common share ("EPS") of $0.57, compared to net income of $14.2 million and EPS of $0.56 for the prior quarter, and net income of $14.8 million and EPS of $0.58 for the second quarter 2015.

"Westamerica’s revenue stream was stable from the first quarter 2016 to the second quarter 2016, with fully-taxable equivalent net interest income and noninterest income totaling $48.2 million for both quarters. Credit quality improved with nonperforming assets declining to $18.1 million at June 30, 2016 from $26.4 million at March 31, 2016. Noninterest expenses declined $630 thousand from the first quarter 2016 to the second quarter 2016,” said Chairman, President and CEO David Payne. “With stable revenues and reduced expenses, Westamerica delivered higher net income for our shareholders, generating an annualized return on shareholders’ common equity of 11 percent for the second quarter 2016. Westamerica paid its shareholders a $0.39 per share dividend in the second quarter,” concluded Payne.

The annualized net interest margin on a fully taxable equivalent basis was 3.27 percent for the second quarter 2016, compared to 3.34 percent for the prior quarter, and 3.37 percent for the second quarter 2015. Net interest income on a fully taxable equivalent basis was $36.5 million for the second quarter 2016, compared to $36.4 million for the prior quarter, and $37.4 million for the second quarter 2015. The Company’s loan portfolio has declined from the second quarter 2015 through the second quarter 2016; Management has been avoiding long-dated, low-yielding loans given historically low interest rates. Management has also maintained conservative loan underwriting, terms and conditions. During this period, the investment portfolio has grown. The changing composition of interest earning assets and low market interest rates has pressured the net interest margin. The funding cost of deposits and other interest-bearing borrowings, as a percentage of average loans and investment securities, was 0.05 percent for the second quarter 2016, unchanged from the prior quarter and down from 0.06 percent for the second quarter 2015.

The provision for loan losses was zero for the second quarter 2016, unchanged from the prior quarter and second quarter 2015. Net loan losses charged against the allowance for loan losses totaled $577 thousand for the second quarter 2016, compared to $284 thousand for the prior quarter and $359 thousand for the second quarter 2015. At June 30, 2016, the allowance for loan losses totaled $28.9 million and nonperforming loans totaled $13.9 million.

Noninterest income for the second quarter 2016 totaled $11.7 million, essentially unchanged from the prior quarter, and compared to $12.3 million for the second quarter 2015.

Noninterest expense for the second quarter 2016 totaled $25.2 million, compared to $25.9 million for the prior quarter, and $26.9 million for the second quarter 2015. Personnel costs were lower for the second quarter 2016 compared to the first quarter 2016 due to seasonally higher payroll taxes in the first quarter 2016. Personnel costs were lower for the second quarter 2016 compared to the second quarter 2015 due to lower insurance related costs. For the second quarter 2016, the cost of holding other real estate owned was offset by gains realized on the liquidation of properties.

At June 30, 2016, Westamerica Bancorporation's tangible common equity-to-asset ratio was 8.5 percent, and assets totaled $5.2 billion. Westamerica Bancorporation, through its wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.

Westamerica Bancorporation Web Address: www.westamerica.com

FORWARD-LOOKING INFORMATION:

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

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

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2015 filed on Form 10-K and quarterly report for the quarter ended March 31, 2016 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company's business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2011, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.

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

  Public Information July 21, 2016  
WESTAMERICA BANCORPORATION    
FINANCIAL HIGHLIGHTS     
June 30, 2016     
       
1. Net Income Summary.     
  (in thousands except per-share amounts) 
    %  
  Q2'16Q2'15ChangeQ1'16 
       
 Net Interest and Fee Income (FTE)$36,495  $37,415   -2.5%$36,447   
 Provision for Loan Losses   -     -   n/m    -   
 Noninterest Income 11,702   12,269   -4.6% 11,729   
 Noninterest Expense 25,229   26,896   -6.2% 25,858   
 Income Before Taxes (FTE) 22,968   22,788   0.8% 22,318   
 Income Tax Provision (FTE) 8,422   8,027   4.9% 8,092   
 Net Income$14,546  $14,761   -1.5%$14,226   
       
 Average Common Shares Outstanding 25,586   25,514   0.3% 25,445   
 Diluted Average Common Shares 25,630   25,536   0.4% 25,468   
       
 Operating Ratios:     
 Basic Earnings Per Common Share$0.57  $0.58   -1.7%$0.56   
 Diluted Earnings Per Common Share 0.57   0.58   -1.7% 0.56   
 Return On Assets (a) 1.13% 1.17%  1.11% 
 Return On Common Equity (a) 10.9% 11.5%  10.9% 
 Net Interest Margin (FTE) (a) 3.27% 3.37%  3.34% 
 Efficiency Ratio (FTE) 52.3% 54.1%  53.7% 
       
 Dividends Paid Per Common Share$0.39  $0.38   2.6%$0.39   
 Common Dividend Payout Ratio    68% 66%  70% 
       
    %  
  6/30'16YTD6/30'15YTDChange  
       
 Net Interest and Fee Income (FTE)$72,942  $74,345   -1.9%  
 Provision for Loan Losses   -     -   n/m   
 Noninterest Income 23,431   24,569   -4.6%  
 Noninterest Expense 51,087   53,623   -4.7%  
 Income Before Taxes (FTE) 45,286   45,291   0.0%  
 Income Tax Provision (FTE) 16,514   15,973   3.4%  
 Net Income$28,772  $29,318   -1.9%  
       
 Average Common Shares Outstanding 25,516   25,582   -0.3%  
 Diluted Average Common Shares 25,549   25,595   -0.2%  
       
 Operating Ratios:     
 Basic Earnings Per Common Share$1.13  $1.15   -1.7%  
 Diluted Earnings Per Common Share 1.13   1.15   -1.7%  
 Return On Assets (a) 1.12% 1.17%   
 Return On Common Equity (a) 10.9% 11.5%   
 Net Interest Margin (FTE) (a) 3.30% 3.40%   
 Efficiency Ratio (FTE) 53.0% 54.2%   
       
 Dividends Paid Per Common Share$0.78  $0.76   2.6%  
 Common Dividend Payout Ratio    69% 66%   
       
2. Net Interest Income.     
  (dollars in thousands) 
    %  
  Q2'16Q2'15ChangeQ1'16 
       
 Interest and Fee Income (FTE)$37,036  $38,032   -2.6%$36,999   
 Interest Expense 541   617   -12.3% 552   
 Net Interest and Fee Income (FTE)$36,495  $37,415   -2.5%$36,447   
       
 Average Earning Assets$4,473,700  $4,436,196   0.8%$4,381,423   
 Average Interest-     
   Bearing Liabilities 2,598,868   2,540,194   2.3% 2,601,408   
       
 Yield on Earning Assets (FTE) (a) 3.32% 3.43%  3.39% 
 Cost of Funds (a) 0.05% 0.06%  0.05% 
 Net Interest Margin (FTE) (a) 3.27% 3.37%  3.34% 
 Interest Expense/     
   Interest-Bearing Liabilities (a) 0.08% 0.10%  0.09% 
 Net Interest Spread (FTE) (a) 3.24% 3.33%  3.30% 
       
    %  
  6/30'16YTD6/30'15YTDChange  
       
 Interest and Fee Income (FTE)$74,035  $75,621   -2.1%  
 Interest Expense 1,093   1,276   -14.4%  
 Net Interest and Fee Income (FTE)$72,942  $74,345   -1.9%  
       
 Average Earning Assets$4,427,507  $4,389,374   0.9%  
 Average Interest-     
   Bearing Liabilities 2,600,138   2,555,752   1.7%  
       
 Yield on Earning Assets (FTE) (a) 3.35% 3.46%   
 Cost of Funds (a) 0.05% 0.06%   
 Net Interest Margin (FTE) (a) 3.30% 3.40%   
 Interest Expense/     
   Interest-Bearing Liabilities (a) 0.08% 0.10%   
 Net Interest Spread (FTE) (a) 3.27% 3.36%   
       
3. Loans & Other Earning Assets.     
  (average volume, dollars in thousands) 
    %  
  Q2'16Q2'15ChangeQ1'16 
       
 Total Assets$5,184,409  $5,044,361   2.8%$5,174,804   
 Total Earning Assets 4,473,700   4,436,196   0.8% 4,381,423   
 Total Loans 1,455,050   1,655,779   -12.1% 1,500,616   
   Commercial Loans 356,629   405,891   -12.1% 370,131   
   Commercial RE Loans  611,996   687,221   -10.9% 630,542   
   Consumer Loans 486,425   562,667   -13.6% 499,943   
 Total Investment Securities 3,018,650   2,780,417   8.6% 2,880,807   
   Available For Sale (Market) 1,554,014   1,724,126   -9.9% 1,567,335   
   Held To Maturity 1,464,636   1,056,291   38.7% 1,313,472   
   Unrealized Gain 33,820   5,022   n/m  23,669   
       
 Loans/Deposits 32.1% 37.7%  33.1% 
       
    %  
  6/30'16YTD6/30'15YTDChange  
       
 Total Assets$5,179,607  $5,051,907   2.5%  
 Total Earning Assets 4,427,507   4,389,374   0.9%  
 Total Loans 1,477,833   1,669,686   -11.5%  
   Commercial Loans 363,380   403,542   -10.0%  
   Commercial RE Loans  621,269   698,784   -11.1%  
   Consumer Loans 493,184   567,360   -13.1%  
 Total Investment Securities 2,949,674   2,719,688   8.5%  
   Available For Sale (Market) 1,560,675   1,678,749   -7.0%  
   Held To Maturity 1,388,999   1,040,939   33.4%  
   Unrealized Gain 33,820   5,022   n/m   
       
 Loans/Deposits 32.6% 38.0%   
       
4. Deposits, Other Interest-Bearing Liabilities & Equity.   
  (average volume, dollars in thousands) 
    %  
  Q2'16Q2'15ChangeQ1'16 
       
 Total Deposits$4,531,751  $4,395,351   3.1%$4,537,548   
   Noninterest Demand  1,994,803   1,942,124   2.7% 1,993,986   
   Interest Bearing Transaction 855,732   804,512   6.4% 872,464   
   Savings 1,404,322   1,300,058   8.0% 1,387,217   
   Time greater than $100K 119,475   172,605   -30.8% 123,691   
   Time less than $100K 157,419   176,052   -10.6% 160,190   
 Total Short-Term Borrowings 61,920   86,967   -28.8% 57,846   
 Shareholders' Equity 537,987   514,768   4.5% 527,177   
       
 Demand Deposits/     
   Total Deposits 44.0% 44.2%  43.9% 
 Transaction & Savings      
   Deposits / Total Deposits 93.9% 92.1%  93.7% 
       
    %  
  6/30'16YTD6/30'15YTDChange  
       
 Total Deposits$4,534,650  $4,399,127   3.1%  
   Noninterest Demand  1,994,395   1,931,034   3.3%  
   Interest Bearing Transaction 864,098   807,677   7.0%  
   Savings 1,395,769   1,296,169   7.7%  
   Time greater than $100K 121,583   185,854   -34.6%  
   Time less than $100K 158,805   178,393   -11.0%  
 Total Short-Term Borrowings 59,883   86,662   -30.9%  
 Federal Home Loan Bank Advances   -   997   n/m   
 Shareholders' Equity 532,582   515,423   3.3%  
       
 Demand Deposits/     
   Total Deposits 44.0% 43.9%   
 Transaction & Savings      
   Deposits / Total Deposits 93.8% 91.7%   
       
5. Interest Yields Earned & Rates Paid.    
  (dollars in thousands)  
  Q2'16  
  AverageIncome/Yield (a) /  
  VolumeExpenseRate  
       
 Interest & Fee Income Earned     
   Total Earning Assets (FTE)$4,473,700  $37,036   3.32%  
   Total Loans (FTE)   1,455,050   17,897   4.95%  
   Commercial Loans (FTE) 356,629   4,197   4.73%  
   Commercial RE Loans  611,996   9,538   6.27%  
   Consumer Loans 486,425   4,162   3.44%  
   Total Investments (FTE) 3,018,650   19,139   2.53%  
       
 Interest Expense Paid     
   Total Earning Assets  4,473,700   541   0.05%  
   Total Interest-Bearing Liabilities 2,598,868   541   0.08%  
   Total Interest-Bearing Deposits 2,536,948   531   0.08%  
   Interest-Bearing Transaction 855,732   67   0.03%  
   Savings 1,404,322   225   0.06%  
   Time less than $100K 157,419   104   0.27%  
   Time greater than $100K 119,475   135   0.45%  
   Total Short-Term Borrowings  61,920   10   0.07%  
       
 Net Interest Income and      
   Margin (FTE) $36,495   3.27%  
       
  Q2'15  
  AverageIncome/Yield (a) /  
  VolumeExpenseRate  
       
 Interest & Fee Income Earned     
   Total Earning Assets (FTE)$4,436,196  $38,032   3.43%  
   Total Loans (FTE) 1,655,779   20,424   4.95%  
   Commercial Loans (FTE) 405,891   4,922   4.86%  
   Commercial RE Loans  687,221   10,524   6.14%  
   Consumer Loans 562,667   4,978   3.55%  
   Total Investments (FTE) 2,780,417   17,608   2.53%  
       
 Interest Expense Paid     
   Total Earning Assets  4,436,196   617   0.06%  
   Total Interest-Bearing Liabilities 2,540,194   617   0.10%  
   Total Interest-Bearing Deposits 2,453,227   601   0.10%  
   Interest-Bearing Transaction 804,512   62   0.03%  
   Savings 1,300,058   207   0.06%  
   Time less than $100K 176,052   150   0.34%  
   Time greater than $100K 172,605   182   0.42%  
   Total Short-Term Borrowings  86,967   16   0.07%  
       
 Net Interest Income and     
   Margin (FTE) $37,415   3.37%  
       
6. Noninterest Income.     
  (dollars in thousands except per-share amounts) 
    %  
  Q2'16Q2'15ChangeQ1'16 
       
 Service Charges on Deposits$5,239  $5,694   -8.0%$5,248   
 Merchant Processing Services 1,638   1,783   -8.1% 1,529   
 Debit Card Fees 1,621   1,534   5.7% 1,516   
 Other Service Fees 650   683   -4.8% 629   
 ATM Processing Fees 603   627   -4.0% 658   
 Trust Fees 657   672   -2.2% 661   
 Financial Services Commissions 137   198   -31.0% 156   
 Other Income 1,157   1,078   7.3% 1,332   
 Total Noninterest Income$11,702  $12,269   -4.6%$11,729   
       
   Total Revenue (FTE)$48,197  $49,684   -3.0%$48,176   
   Noninterest Income/Revenue (FTE) 24.3% 24.7%  24.3% 
   Service Charges/Avg. Deposits (a) 0.46% 0.52%  0.47% 
   Total Revenues (FTE) Per Avg.      
 Common Share (a)$7.58  $7.81   -3.0%$7.61   
       
    %  
  6/30'16YTD6/30'15YTDChange  
       
 Service Charges on Deposits$10,487  $11,401   -8.0%  
 Merchant Processing Services 3,167   3,486   -9.1%  
 Debit Card Fees 3,137   2,990   4.9%  
 Other Service Fees 1,279   1,348   -5.1%  
 ATM Processing Fees 1,261   1,212   4.0%  
 Trust Fees 1,318   1,378   -4.4%  
 Financial Services Commissions 293   351   -16.6%  
 Other Income 2,489   2,403   3.6%  
 Total Noninterest Income$23,431  $24,569   -4.6%  
       
   Total Revenue (FTE)$96,373  $98,914   -2.6%  
   Noninterest Income/Revenue (FTE) 24.3% 24.8%   
   Service Charges/Avg. Deposits (a) 0.47% 0.52%   
   Total Revenues (FTE) Per Avg.      
 Common Share (a)$7.60  $7.80   -2.6%  
       
7. Noninterest Expense.     
  (dollars in thousands) 
    %  
  Q2'16Q2'15ChangeQ1'16 
       
 Salaries & Benefits$12,887  $13,696   -5.9%$13,117   
 Occupancy 3,400   3,726   -8.8% 3,398   
 Outsourced Data Processing 2,130   2,111   0.9% 2,130   
 Amortization of      
   Identifiable Intangibles 870   955   -8.9% 905   
 Professional Fees 758   582   30.2% 732   
 Furniture & Equipment 1,187   1,158   2.5% 1,213   
 Other Real Estate Owned (392) 52   n/m  111   
 Courier Service 462   598   -22.6% 545   
 Other Operating 3,927   4,018   -2.3% 3,707   
 Total Noninterest Expense$25,229  $26,896   -6.2%$25,858   
       
 Noninterest Expense/     
   Avg. Earning Assets (a) 2.27% 2.43%  2.37% 
 Noninterest Expense/Revenues (FTE) 52.3% 54.1%  53.7% 
       
    %  
  6/30'16YTD6/30'15YTDChange  
       
 Salaries & Benefits$26,004  $27,034   -3.8%  
 Occupancy 6,798   7,453   -8.8%  
 Outsourced Data Processing 4,260   4,219   1.0%  
 Amortization of      
   Identifiable Intangibles 1,775   1,956   -9.3%  
 Professional Fees 1,490   1,130   31.8%  
 Furniture & Equipment 2,400   2,277   5.4%  
 Other Real Estate Owned (281) 367   n/m   
 Courier Service 1,007   1,141   -11.7%  
 Other Operating 7,634   8,046   -5.1%  
 Total Noninterest Expense$51,087  $53,623   -4.7%  
       
 Noninterest Expense/     
   Avg. Earning Assets (a) 2.32% 2.46%   
 Noninterest Expense/Revenues (FTE) 53.0% 54.2%   
       
8. Provision for Loan Losses.     
  (dollars in thousands) 
    %  
  Q2'16Q2'15ChangeQ1'16 
       
 Average Total Loans$1,455,050  $1,655,779   -12.1%$1,500,616   
       
 Allowance for Loan Loss (ALL)     
   Beginning of Period $29,487  $31,187   -5.5%$29,771   
 Provision for Loan Losses      -     -   n/m    -   
 Net ALL Losses (577) (359) 60.7% (284) 
 ALL End of Period$28,910  $30,828   -6.2%$29,487   
 ALL Recoveries/Gross ALL Losses    61% 74%  87% 
       
 Net ALL Losses/Avg. Total Loans (a) 0.16% 0.09%  0.08% 
       
    %  
  6/30'16YTD6/30'15YTDChange  
       
 Average Total Loans$1,477,833  $1,669,686   -11.5%  
       
 Allowance for Loan Loss (ALL)     
   Beginning of Period $29,771  $31,485   -5.4%  
 Provision for Loan Losses      -     -   n/m   
 Net ALL Losses (861) (657) 30.9%  
 ALL End of Period$28,910  $30,828   -6.2%  
 ALL Recoveries/Gross ALL Losses    76% 73%   
       
 Net ALL Losses/Avg. Total Loans (a) 0.12% 0.08%   
       
9. Credit Quality.     
  (dollars in thousands) 
    %  
  6/30/166/30/15Change3/31/16 
       
 Nonperforming Originated Loans:     
   Nonperforming Nonaccrual$1,693  $6,269   -73.0%$9,205   
   Performing Nonaccrual   6,890   11   n/m    1,841   
  Total Nonaccrual Loans 8,583   6,280   36.7% 11,046   
  90+ Days Past Due Accruing Loans 303   221   37.1% 183   
  Total 8,886   6,501   36.7% 11,229   
 Repossessed Originated Loan Collateral 1,089   5,906   -81.6% 4,786   
 Total Nonperforming     
  Originated Assets 9,975   12,407   -19.6% 16,015   
       
 Nonperforming Purchased Covered Loans (1):    
   Nonperforming Nonaccrual   29     3   n/m    -   
   Performing Nonaccrual   -     -   n/m    -   
  Total Nonaccrual Loans   29     3   n/m    -   
  90+ Days Past Due Accruing Loans   -     -   n/m    -   
  Total   29     3   n/m    -   
 Repossessed Purchased Covered      
  Loan Collateral (1)   -     486   n/m    -   
 Total Nonperforming Purchased     
 Covered Assets (1)   29   489   n/m    -   
       
 Nonperforming Purchased Non-Covered Loans (2):    
   Nonperforming Nonaccrual 4,805     9,937   -51.6% 6,601   
   Performing Nonaccrual   148     5   n/m    80   
  Total Nonaccrual Loans 4,953     9,942   -50.2% 6,681   
  90+ Days Past Due Accruing Loans   53     -   n/m    77   
  Total 5,006     9,942   -49.6% 6,758   
 Repossessed Purchased Non-Covered      
  Loan Collateral (2)   3,073     2,868   7.2%   3,652   
 Total Nonperforming Purchased     
  Non-Covered Assets (2) 8,079     12,810   -36.9% 10,410   
       
 Total Nonperforming Assets$18,083  $25,706   -29.7%$26,425   
       
 Total Originated Loans Outstanding$1,280,194  $1,425,047   -10.2%$1,310,083   
 Total Purchased Covered      
  Loans Outstanding (1) 12,777   15,109   -15.4% 13,664   
 Total Purchased Non-Covered      
  Loans Outstanding (2) 136,589     191,115   -28.5% 149,449   
 Total Loans Outstanding $1,429,560  $1,631,271   -12.4%$1,473,196   
       
 Total Assets $5,179,085  $5,031,230   2.9%$5,199,868   
       
 Loans:     
  Allowance for Loan Losses$28,910  $30,828   -6.2%$29,487   
  Allowance/Loans 2.02% 1.89%  2.00% 
  Nonperforming Loans/Total Loans 0.97% 1.01%  1.22% 
       
 Purchased Covered Loans (1):     
  Fair Value Discount on Purchased      
  Covered Loans   -   $197   $18   
  Discount/Purchased Covered     
   Loans, gross 0.00% 1.29%  0.13% 
  Nonperforming Purchased Covered Loans/    
   Total Purchased Covered Loans 0.23% 0.02%  0.00% 
       
 Purchased Non-Covered Loans (2):     
  Fair Value Discount on Purchased      
   Non-Covered Loans$5,411  $7,780   $6,084   
  Discount/Purchased Non-Covered 3.81% 3.91%  3.91% 
   Loans, gross     
  Nonperforming Purchased Non-Covered Loans/    
   Total Purchased Non-Covered Loans 3.66% 5.20%  4.52% 
       
10. Capital.     
  (in thousands, except per-share amounts) 
    %  
  6/30/166/30/15Change3/31/16 
       
 Shareholders' Equity$558,327  $525,338   6.3%$538,973   
 Total Assets 5,179,085   5,031,230   2.9% 5,199,868   
       
 Shareholders' Equity/     
   Total Assets 10.78% 10.44%  10.37% 
 Shareholders' Equity/     
   Total Loans 39.06% 32.20%  36.59% 
 Tangible Common Equity Ratio 8.48% 7.99%  8.04% 
 Common Shares Outstanding 25,632   25,529   0.4% 25,438   
 Common Equity Per Share$21.78  $20.58   5.9%$21.19   
 Market Value Per Common Share$49.26  $50.65   -2.7%$48.71   
       
 Share Repurchase Programs     
  (shares in thousands) 
    %  
  Q2'16Q2'15ChangeQ1'16 
       
 Total Shares Repurchased 7   133   -94.6% 130   
   Average Repurchase Price$49.35  $43.89   12.5%$41.53   
 Net Shares (Issued) Repurchased (194) 34   n/m  90   
       
    %  
  6/30'16YTD6/30'15YTDChange  
       
 Total Shares Repurchased 137   316   -56.4%  
   Average Repurchase Price$41.94  $43.37   -3.3%  
 Net Shares (Issued) Repurchased (104) 216   -148.2%  
       
11. Period-End Balance Sheets.     
  (unaudited, dollars in thousands) 
    %  
  6/30/166/30/15Change3/31/16 
 Assets:     
   Cash and Due from Banks$441,785  $289,606   52.5%$471,164   
       
   Investment Securities:     
   Available For Sale 1,531,035   1,634,878   -6.4% 1,585,970   
   Held to Maturity 1,473,357   1,159,581   27.1% 1,358,139   
       
   Loans 1,429,560   1,631,271   -12.4% 1,473,196   
   Allowance For Loan Losses (28,910) (30,828) -6.2% (29,487) 
   Total Loans, net 1,400,650   1,600,443   -12.5% 1,443,709   
       
   Other Real Estate Owned 4,162   9,260   -55.1% 8,438   
   Premises and Equipment, net 37,759   37,945   -0.5% 38,045   
   Identifiable Intangibles, net 8,656   12,331   -29.8% 9,526   
   Goodwill  121,673   121,673   0.0% 121,673   
   Other Assets 160,008   165,513   -3.3% 163,204   
       
 Total Assets$5,179,085  $5,031,230   2.9%$5,199,868   
       
 Liabilities and Shareholders' Equity:     
   Deposits:     
   Noninterest Bearing$1,978,947  $1,930,551   2.5%$1,989,010   
   Interest-Bearing Transaction 827,857   795,793   4.0% 855,008   
   Savings 1,404,840   1,287,859   9.1% 1,393,919   
   Time 273,670   340,641   -19.7% 278,813   
   Total Deposits 4,485,314   4,354,844   3.0% 4,516,750   
       
   Short-Term Borrowed Funds 67,852   82,747   -18.0% 52,451   
   Other Liabilities 67,592   68,301   -1.0% 91,694   
 Total Liabilities 4,620,758   4,505,892   2.5% 4,660,895   
       
 Shareholders' Equity:     
   Common Equity:     
   Paid-In Capital 391,213   380,050   2.9% 381,426   
   Accumulated Other     
   Comprehensive Income 11,885   3,988   198.0% 6,619   
   Retained Earnings 155,229   141,300   9.9% 150,928   
 Total Shareholders' Equity 558,327   525,338   6.3% 538,973   
       
 Total Liabilities and      
   Shareholders' Equity$5,179,085  $5,031,230   2.9%$5,199,868   
       
12. Income Statements.     
  (unaudited, in thousands except per-share amounts) 
    %  
  Q2'16Q2'15ChangeQ1'16 
 Interest & Fee Income:     
   Loans$17,583  $20,035   -12.2%$18,353   
   Investment Securities:     
   Available for Sale 8,091   7,999   1.1% 7,967   
   Held to Maturity 8,053   6,391   26.0% 7,327   
 Total Interest & Fee Income 33,727   34,425   -2.0% 33,647   
       
 Interest Expense:     
   Transaction Deposits 67   62   7.2% 70   
   Savings Deposits 225   207   8.5% 223   
   Time Deposits 239   332   -28.0% 250   
   Short-Term Borrowed Funds 10   16   -35.2% 9   
 Total Interest Expense 541   617   -12.3% 552   
       
 Net Interest Income 33,186   33,808   -1.8% 33,095   
       
 Provision for Loan Losses   -     -   n/m    -   
       
 Noninterest Income:     
   Service Charges  5,239   5,694   -8.0% 5,248   
   Merchant Processing Services 1,638   1,783   -8.1% 1,529   
   Debit Card Fees 1,621   1,534   5.7% 1,516   
   Other Service Fees 650   683   -4.8% 629   
   ATM Processing Fees 603   627   -4.0% 658   
   Trust Fees 657   672   -2.2% 661   
   Financial Services Commissions 137   198   -31.0% 156   
   Other 1,157   1,078   7.3% 1,332   
 Total Noninterest Income 11,702   12,269   -4.6% 11,729   
       
 Noninterest Expense:     
   Salaries and  Benefits 12,887   13,696   -5.9% 13,117   
   Occupancy  3,400   3,726   -8.8% 3,398   
   Outsourced Data Processing 2,130   2,111   0.9% 2,130   
   Amortization of Identifiable Intangibles 870   955   -8.9% 905   
   Professional Fees 758   582   30.2% 732   
   Furniture & Equipment 1,187   1,158   2.5% 1,213   
   Other Real Estate Owned (392) 52   n/m  111   
   Courier Service 462   598   -22.6% 545   
   Other 3,927   4,018   -2.3% 3,707   
 Total Noninterest Expense 25,229   26,896   -6.2% 25,858   
       
 Income Before Income Taxes 19,659   19,181   2.5% 18,966   
 Income Tax Provision 5,113   4,420   15.7% 4,740   
 Net Income$14,546  $14,761   -1.5%$14,226   
       
 Average Common Shares Outstanding 25,586   25,514   0.3% 25,445   
 Diluted Common Shares Outstanding 25,630   25,536   0.4% 25,468   
       
 Per Common Share Data:     
   Basic Earnings$0.57  $0.58   -1.7%$0.56   
   Diluted Earnings 0.57   0.58   -1.7% 0.56   
   Dividends Paid 0.39   0.38   2.6% 0.39   
       
    %  
  6/30'16YTD6/30'15YTDChange  
 Interest & Fee Income:     
   Loans$35,936  $40,265   -10.7%  
   Investment Securities:     
   Available for Sale 16,058   15,468   3.8%  
   Held to Maturity 15,380   12,609   22.0%  
 Total Interest & Fee Income 67,374   68,342   -1.4%  
       
 Interest Expense:     
   Transaction Deposits 137   125   9.2%  
   Savings Deposits 448   423   5.7%  
   Time Deposits 489   695   -29.6%  
   Short-Term Borrowed Funds 19   32   -38.8%  
   Federal Home Loan Bank Advances   -   1   n/m   
 Total Interest Expense 1,093   1,276   -14.4%  
       
 Net Interest Income 66,281   67,066   -1.2%  
       
 Provision for Loan Losses   -     -   n/m   
       
 Noninterest Income:     
   Service Charges  10,487   11,401   -8.0%  
   Merchant Processing Services 3,167   3,486   -9.1%  
   Debit Card Fees 3,137   2,990   4.9%  
   Other Service Fees 1,279   1,348   -5.1%  
   ATM Processing Fees 1,261   1,212   4.0%  
   Trust Fees 1,318   1,378   -4.4%  
   Financial Services Commissions 293   351   -16.6%  
   Other 2,489   2,403   3.6%  
 Total Noninterest Income 23,431   24,569   -4.6%  
       
 Noninterest Expense:     
   Salaries and  Benefits 26,004   27,034   -3.8%  
   Occupancy  6,798   7,453   -8.8%  
   Outsourced Data Processing 4,260   4,219   1.0%  
   Amortization of Identifiable Intangibles 1,775   1,956   -9.3%  
   Professional Fees 1,490   1,130   31.8%  
   Furniture & Equipment 2,400   2,277   5.4%  
   Other Real Estate Owned (281) 367   n/m   
   Courier Service 1,007   1,141   -11.7%  
   Other 7,634   8,046   -5.1%  
 Total Noninterest Expense 51,087   53,623   -4.7%  
       
 Income Before Income Taxes 38,625   38,012   1.6%  
 Income Tax Provision 9,853   8,694   13.3%  
 Net Income$28,772  $29,318   -1.9%  
       
 Average Common Shares Outstanding 25,516   25,582   -0.3%  
 Diluted Common Shares Outstanding 25,549   25,595   -0.2%  
       
 Per Common Share Data:     
 Basic Earnings$1.13  $1.15   -1.7%  
 Diluted Earnings 1.13   1.15   -1.7%  
 Dividends Paid 0.78   0.76   2.6%  
       
 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, which is a non-generally accepted
accounting principles (GAAP) financial measure.
  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) Purchased covered loans and repossessed loan collateral represent assets purchased in a
business combination on which losses are shared with the FDIC per a Loss-Sharing Agreement.
  
 (2) Purchased non-covered loans and repossessed loan collateral represent assets purchased in a
business combination.
  
       

 

 

 


            

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