Westamerica Bancorporation Reports Fourth Quarter 2019 Financial Results

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

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

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

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

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

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

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

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

Westamerica Bancorporation Web Address: www.westamerica.com

For additional information contact:
 Westamerica Bancorporation
 1108 Fifth Avenue, San Rafael, CA 94901
 Robert A. Thorson – Treasurer
 707-863-6840
 [e-mail]

FORWARD-LOOKING INFORMATION:

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

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

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

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

 

	Public Information January 16, 2020
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
December 31, 2019
1. Net Income Summary.
		(in thousands except per-share amounts)
								%
		Q4'2019			Q4'2018			Change		Q3'2019
	Net Interest and Fee Income (FTE)	$40,481			$40,288			0.5	%	$40,349
	Provision for Loan Losses		-			-		n/m			-
	Noninterest Income		11,732			11,897		-1.4	%		11,809
	Noninterest Expense		24,209			25,787		-6.1	%		24,033
	Income Before Taxes (FTE)		28,004			26,398		6.1	%		28,125
	Income Tax Provision (FTE)		7,276			7,343		-0.9	%		7,735
	Net Income	$20,728			$19,055			8.8	%	$20,390
	Average Common Shares Outstanding		27,050			26,729		1.2	%		26,986
	Diluted Average Common Shares		27,094			26,815		1.0	%		27,027
	Operating Ratios:
	Basic Earnings Per Common Share	$0.77			$0.71			7.9	%	$0.76
	Diluted Earnings Per Common Share	$0.77				0.71		6.3	%		0.75
	Return On Assets (a)		1.46	%		1.33	%				1.45	%
	Return On Common Equity (a)		11.8	%		11.7	%				11.9	%
	Net Interest Margin (FTE) (a)		3.08	%		3.06	%				3.11	%
	Efficiency Ratio (FTE)		46.4	%		49.4	%				46.1	%
	Dividends Paid Per Common Share	$0.41			$0.40			2.5	%	$0.41
	Common Dividend Payout Ratio		54	%		56	%				55	%
								%
		12/31'19YTD			12/31'18YTD			Change
	Net Interest and Fee Income (FTE)	$161,406			$155,410			3.9	%
	Provision for Loan Losses		-			-		n/m
	Noninterest Income		47,408			48,149		-1.5	%
	Noninterest Expense		98,986			106,916		-7.4	%
	Income Before Taxes (FTE)		109,828			96,643		13.6	%
	Income Tax Provision (FTE)		29,439			25,079		17.4	%
	Net Income	$80,389			$71,564			12.3	%
	Average Common Shares Outstanding		26,956			26,649		1.2	%
	Diluted Average Common Shares		27,006			26,756		0.9	%
	Operating Ratios:
	Basic Earnings Per Common Share	$2.98			$2.69			10.8	%
	Diluted Earnings Per Common Share		2.98			2.67		11.6	%
	Return On Assets		1.44	%		1.27	%
	Return On Common Equity		11.9	%		11.3	%
	Net Interest Margin (FTE)		3.11	%		2.98	%
	Efficiency Ratio (FTE)		47.4	%		52.5	%
	Dividends Paid Per Common Share	$1.63			$1.60			1.9	%
	Common Dividend Payout Ratio		55	%		60	%
2. Net Interest Income.
		(dollars in thousands)
								%
		Q4'2019			Q4'2018			Change		Q3'2019
	Interest and Fee Income (FTE)	$40,932			$40,802			0.3	%	$40,804
	Interest Expense		451			514		-12.3	%		455
	Net Interest and Fee Income (FTE)	$40,481			$40,288			0.5	%	$40,349
	Average Earning Assets	$5,243,783			$5,270,708			-0.5	%	$5,176,744
	Average Interest-
	Bearing Liabilities		2,599,703			2,691,370		-3.4	%		2,586,880
	Yield on Earning Assets (FTE) (a)		3.11	%		3.10	%				3.15	%
	Cost of Funds (a)		0.03	%		0.04	%				0.04	%
	Net Interest Margin (FTE) (a)		3.08	%		3.06	%				3.11	%
	Interest Expense/
	Interest-Bearing Liabilities (a)		0.07	%		0.08	%				0.07	%
	Net Interest Spread (FTE) (a)		3.04	%		3.02	%				3.08	%
								%
		12/31'19YTD			12/31'18YTD			Change
	Interest and Fee Income (FTE)	$163,294			$157,369			3.8	%
	Interest Expense		1,888			1,959		-3.6	%
	Net Interest and Fee Income (FTE)	$161,406			$155,410			3.9	%
	Average Earning Assets	$5,191,276			$5,212,635			-0.4	%
	Average Interest-
	Bearing Liabilities		2,630,370			2,722,149		-3.4	%
	Yield on Earning Assets (FTE)		3.14	%		3.02	%
	Cost of Funds		0.03	%		0.04	%
	Net Interest Margin (FTE)		3.11	%		2.98	%
	Interest Expense/
	Interest-Bearing Liabilities		0.07	%		0.07	%
	Net Interest Spread (FTE)		3.07	%		2.95	%
3. Loans & Other Earning Assets.
		(average volume, dollars in thousands)
								%
		Q4'2019			Q4'2018			Change		Q3'2019
	Total Assets	$5,645,013			$5,680,321			-0.6	%	$5,570,843
	Total Earning Assets		5,243,783			5,270,708		-0.5	%		5,176,744
	Total Loans		1,116,446			1,189,744		-6.2	%		1,142,668
	Commercial Loans		219,710			271,165		-19.0	%		231,232
	Commercial RE Loans		568,892			570,059		-0.2	%		579,069
	Consumer Loans		327,844			348,520		-5.9	%		332,367
	Total Investment Securities		3,792,781			3,692,951		2.7	%		3,687,049
	Equity Securities		-			1,733		n/m			352
	Debt Securities Available For Sale		3,027,461			2,684,431		12.8	%		2,862,537
	Debt Securities Held To Maturity		765,320			1,006,787		-24.0	%		824,160
	Total Interest-Bearing Cash		334,556			388,013		-13.8	%		347,027
	Loans/Deposits		23.1	%		24.2	%				24.0	%
								%
		12/31'19YTD			12/31'18YTD			Change
	Total Assets	$5,597,109			$5,620,618			-0.4	%
	Total Earning Assets		5,191,276			5,212,635		-0.4	%
	Total Loans		1,161,779			1,209,167		-3.9	%
	Commercial Loans		248,586			292,893		-15.1	%
	Commercial RE Loans		577,539			557,679		3.6	%
	Consumer Loans		335,654			358,595		-6.4	%
	Total Investment Securities		3,704,764			3,577,597		3.6	%
	Equity Securities		961			1,809		-46.9	%
	Debt Securities Available For Sale		2,844,542			2,503,356		13.6	%
	Debt Securities Held To Maturity		859,261			1,072,432		-19.9	%
	Total Interest-Bearing Cash		324,733			425,871		-23.7	%
	Loans/Deposits		24.2	%		24.8	%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
		(average volume, dollars in thousands)
								%
		Q4'2019			Q4'2018			Change		Q3'2019
	Total Deposits	$4,839,552			$4,917,901			-1.6	%	$4,770,976
	Noninterest Demand		2,279,615			2,280,174		-0.0	%		2,234,494
	Interest-Bearing Transaction		922,772			927,676		-0.5	%		916,180
	Savings		1,464,206			1,510,358		-3.1	%		1,441,282
	Time greater than $100K		75,314			86,141		-12.6	%		77,568
	Time less than $100K		97,645			113,552		-14.0	%		101,452
	Total Short-Term Borrowings		39,766			53,643		-25.9	%		50,398
	Shareholders' Equity		694,709			646,129		7.5	%		681,513
	Demand Deposits/
	Total Deposits		47.1	%		46.4	%				46.8	%
	Transaction & Savings
	Deposits / Total Deposits		96.4	%		95.9	%				96.2	%
								%
		12/31'19YTD			12/31'18YTD			Change
	Total Deposits	$4,801,804			$4,872,081			-1.4	%
	Noninterest Demand		2,222,876			2,209,924		0.6	%
	Interest-Bearing Transaction		932,524			928,277		0.5	%
	Savings		1,464,080			1,519,375		-3.6	%
	Time greater than $100K		78,925			94,919		-16.8	%
	Time less than $100K		103,399			119,586		-13.5	%
	Total Short-Term Borrowings		51,442			59,992		-14.3	%
	Shareholders' Equity		675,512			630,697		7.1	%
	Demand Deposits/
	Total Deposits		46.3	%		45.4	%
	Transaction & Savings
	Deposits / Total Deposits		96.2	%		95.6	%
5. Interest Yields Earned & Rates Paid.
		(dollars in thousands)
		Q4'2019
		Average			Income/			Yield (a) /
		Volume			Expense			Rate
	Interest & Fee Income Earned
	Total Earning Assets (FTE)	$5,243,783			$40,932			3.11	%
	Total Loans (FTE)		1,116,446			14,206		5.05	%
	Commercial Loans (FTE)		219,710			2,821		5.09	%
	Commercial RE Loans		568,892			7,748		5.40	%
	Consumer Loans		327,844			3,637		4.41	%
	Total Investments (FTE)		3,792,781			25,330		2.67	%
	Total Interest-Bearing Cash		334,556			1,396		1.63	%
	Interest Expense Paid
	Total Earning Assets		5,243,783			451		0.03	%
	Total Interest-Bearing Liabilities		2,599,703			451		0.07	%
	Total Interest-Bearing Deposits		2,559,937			444		0.07	%
	Interest-Bearing Transaction		922,772			89		0.04	%
	Savings		1,464,206			215		0.06	%
	Time less than $100K		97,645			60		0.24	%
	Time greater than $100K		75,314			80		0.42	%
	Total Short-Term Borrowings		39,766			7		0.08	%
	Net Interest Income and
	Margin (FTE)				$40,481			3.08	%
		Q4'2018
		Average			Income/			Yield (a) /
		Volume			Expense			Rate
	Interest & Fee Income Earned
	Total Earning Assets (FTE)	$5,270,708			$40,802			3.10	%
	Total Loans (FTE)		1,189,744			14,894		4.97	%
	Commercial Loans (FTE)		271,165			3,698		5.41	%
	Commercial RE Loans		570,059			7,607		5.29	%
	Consumer Loans		348,520			3,589		4.09	%
	Total Investments (FTE)		3,692,951			23,916		2.59	%
	Total Interest-Bearing Cash		388,013			1,992		2.23	%
	Interest Expense Paid
	Total Earning Assets		5,270,708			514		0.04	%
	Total Interest-Bearing Liabilities		2,691,370			514		0.08	%
	Total Interest-Bearing Deposits		2,637,727			506		0.08	%
	Interest-Bearing Transaction		927,676			124		0.05	%
	Savings		1,510,358			227		0.06	%
	Time less than $100K		113,552			70		0.24	%
	Time greater than $100K		86,141			85		0.39	%
	Total Short-Term Borrowings		53,643			8		0.06	%
	Net Interest Income and
	Margin (FTE)				$40,288			3.06	%
6. Noninterest Income.
		(dollars in thousands except per-share amounts)
								%
		Q4'2019			Q4'2018			Change		Q3'2019
	Service Charges on Deposits	$4,374			$4,496			-2.7	%	$4,510
	Merchant Processing Services		2,424			2,440		-0.7	%		2,494
	Debit Card Fees		1,568			1,685		-6.9	%		1,641
	Trust Fees		764			737		3.8	%		733
	ATM Processing Fees		696			703		-1.0	%		725
	Other Service Fees		513			620		-17.3	%		580
	Financial Services Commissions		122			112		9.7	%		75
	Securities Gains		167			14		n/m			-
	Other Income		1,104			1,090		1.3	%		1,051
	Total Noninterest Income	$11,732			$11,897			-1.4	%	$11,809
	Total Revenue (FTE)	$52,213			$52,185			0.1	%	$52,158
	Noninterest Income/Revenue (FTE)		22.5	%		22.8	%				22.6	%
	Service Charges/Avg. Deposits (a)		0.36	%		0.36	%				0.38	%
	Total Revenues (FTE) Per Avg.
	Common Share (a)	$7.66			$7.75			-1.1	%	$7.67
								%
		12/31'19YTD			12/31'18YTD			Change
	Service Charges on Deposits	$17,882			$18,508			-3.4	%
	Merchant Processing Services		10,132			9,630		5.2	%
	Debit Card Fees		6,357			6,643		-4.3	%
	Trust Fees		2,963			2,938		0.9	%
	ATM Processing Fees		2,776			2,752		0.9	%
	Other Service Fees		2,255			2,567		-12.2	%
	Life Insurance Gains		433			585		-26.0	%
	Financial Services Commissions		392			499		-21.4	%
	Securities Gains (Losses)		217			(52	)	n/m
	Other Income		4,001			4,079		-1.9	%
	Total Noninterest Income	$47,408			$48,149			-1.5	%
	Total Revenue (FTE)	$208,814			$203,559			2.6	%
	Noninterest Income/Revenue (FTE)		22.7	%		23.7	%
	Service Charges/Avg. Deposits		0.37	%		0.38	%
	Total Revenues (FTE) Per Avg.
	Common Share	$7.75			$7.64			1.4	%
7. Noninterest Expense.
		(dollars in thousands)
								%
		Q4'2019			Q4'2018			Change		Q3'2019
	Salaries & Benefits	$12,297			$13,055			-5.8	%	$12,559
	Occupancy and Equipment		5,077			5,314		-4.5	%		5,199
	Outsourced Data Processing		2,361			2,299		2.7	%		2,374
	Professional Fees		674			565		19.3	%		645
	Courier Service		529			446		18.6	%		456
	Amortization of
	Identifiable Intangibles		73			447		-83.7	%		76
	Other Operating		3,198			3,661		-12.6	%		2,724
	Total Noninterest Expense	$24,209			$25,787			-6.1	%	$24,033
	Noninterest Expense/
	Avg. Earning Assets (a)		1.83	%		1.94	%				1.84	%
	Noninterest Expense/Revenues (FTE)		46.4	%		49.4	%				46.1	%
								%
		12/31'19YTD			12/31'18YTD			Change
	Salaries & Benefits	$51,054			$53,007			-3.7	%
	Occupancy and Equipment		20,240			19,679		2.9	%
	Outsourced Data Processing		9,471			9,229		2.6	%
	Professional Fees		2,465			2,842		-13.3	%
	Courier Service		1,878			1,779		5.6	%
	Loss Contingency (1)		553			3,500		n/m
	Amortization of
	Identifiable Intangibles		538			1,921		-72.0	%
	Other Operating		12,787			14,959		-14.5	%
	Total Noninterest Expense	$98,986			$106,916			-7.4	%
	Noninterest Expense/
	Avg. Earning Assets		1.91	%		2.05	%
	Noninterest Expense/Revenues (FTE)		47.4	%		52.5	%
8. Allowance for Loan Losses.
		(dollars in thousands)
								%
		Q4'2019			Q4'2018			Change		Q3'2019
	Average Total Loans	$1,116,446			$1,189,744			-6.2	%	$1,142,668
	Allowance for Loan Loss (ALL)
	Beginning of Period	$19,828			$22,027			-10.0	%	$20,117
	Provision for Loan Losses		-			-		n/m			-
	Net ALL Losses		(344	)		(676	)	n/m			(289	)
	ALL End of Period	$19,484			$21,351			-8.7	%	$19,828
	Gross ALL Recoveries /
	Gross ALL Losses		71	%		44	%				72	%
	Net ALL Losses /
	Avg. Total Loans (a)		0.12	%		0.23	%				0.10	%
								%
		12/31'19YTD			12/31'18YTD			Change
	Average Total Loans	$1,161,779			$1,209,167			-3.9	%
	Allowance for Loan Loss (ALL)
	Beginning of Period	$21,351			$23,009			-7.2	%
	Provision for Loan Losses		-			-		n/m
	Net ALL Losses		(1,867	)		(1,658	)	n/m
	ALL End of Period	$19,484			$21,351			-8.7	%
	Gross ALL Recoveries /
	Gross ALL Losses		59	%		66	%
	Net ALL Losses /
	Avg. Total Loans		0.16	%		0.14	%
9. Credit Quality.
		(dollars in thousands)
								%
		12/31/19			12/31/18			Change		9/30/19
	Nonperforming Loans:
	Nonperforming Nonaccrual	$659			$998			-34.0	%	$633
	Performing Nonaccrual		3,781			3,870		-2.3	%		3,670
	Total Nonaccrual Loans		4,440			4,868		-8.8	%		4,303
	90+ Days Past Due Accruing Loans		440			551		-20.1	%		351
	Total		4,880			5,419		-9.9	%		4,654
	Repossessed Loan Collateral		43			350		-87.6	%		43
	Total Nonperforming Assets	$4,923			$5,769			-14.7	%	$4,697
	Total Loans Outstanding	$1,126,664			$1,207,202			-6.7	%	$1,133,229
	Total Assets	$5,619,555			$5,568,526			0.9	%	$5,616,055
	Loans:
	Allowance for Loan Losses	$19,484			$21,351			-8.7	%	$19,828
	Allowance/Loans		1.73	%		1.77	%				1.75	%
	Nonperforming Loans/Total Loans		0.43	%		0.45	%				0.41	%
10. Capital.
		(in thousands, except per-share amounts)
								%
		12/31/19			12/31/18			Change		9/30/19
	Shareholders' Equity	$731,417			$615,591			18.8	%	$713,378
	Total Assets		5,619,555			5,568,526		0.9	%		5,616,055
	Shareholders' Equity/
	Total Assets		13.02	%		11.05	%				12.70	%
	Shareholders' Equity/
	Total Loans		64.92	%		50.99	%				62.95	%
	Tangible Common Equity Ratio		11.07	%		9.04	%				10.75	%
	Common Shares Outstanding		27,062			26,730		1.2	%		27,014
	Common Equity Per Share	$27.03			$23.03			17.4	%	$26.41
	Market Value Per Common Share	$67.77			$55.68			21.7	%	$62.18
	Share Repurchase Programs
		(shares in thousands)
								%
		Q4'2019			Q4'2018			Change		Q3'2019
	Total Shares Repurchased		-			-		n/m			-
	Average Repurchase Price		$-			$-		n/m			$-
	Net Shares Issued		(48	)		(3	)	n/m			(52	)
								%
		12/31'19YTD			12/31'18YTD			Change
	Total Shares Repurchased		8			9		n/m
	Average Repurchase Price	$61.98			$58.46			n/m
	Net Shares Issued		(332	)		(305	)	n/m
11. Period-End Balance Sheets.
		(unaudited, dollars in thousands)
								%
		12/31/19			12/31/18			Change		9/30/19
	Assets:
	Cash and Due from Banks	$373,421			$420,284			-11.2	%	$415,639
	Investment Securities:
	Equity Securities		-			1,747		n/m			-
	Debt Securities Available For Sale		3,078,846			2,654,670		16.0	%		2,983,767
	Debt Securities Held to Maturity		738,072			984,609		-25.0	%		793,216
	Loans		1,126,664			1,207,202		-6.7	%		1,133,229
	Allowance For Loan Losses		(19,484	)		(21,351	)	-8.7	%		(19,828	)
	Total Loans, net		1,107,180			1,185,851		-6.6	%		1,113,401
	Other Real Estate Owned		43			350		-87.6	%		43
	Premises and Equipment, net		34,597			34,507		0.3	%		34,080
	Identifiable Intangibles, net		1,391			1,929		-27.9	%		1,464
	Goodwill		121,673			121,673		0.0	%		121,673
	Other Assets		164,332			162,906		0.9	%		152,772
	Total Assets	$5,619,555			$5,568,526			0.9	%	$5,616,055
	Liabilities and Shareholders' Equity:
	Deposits:
	Noninterest-Bearing	$2,240,112			$2,243,251			-0.1	%	$2,265,640
	Interest-Bearing Transaction		931,888			929,346		0.3	%		910,566
	Savings		1,471,284			1,498,991		-1.8	%		1,445,210
	Time		169,337			195,251		-13.3	%		175,207
	Total Deposits		4,812,621			4,866,839		-1.1	%		4,796,623
	Short-Term Borrowed Funds		30,928			51,247		-39.6	%		45,646
	Other Liabilities		44,589			34,849		27.9	%		60,408
	Total Liabilities		4,888,138			4,952,935		-1.3	%		4,902,677
	Shareholders' Equity:
	Common Equity:
	Paid-In Capital		466,231			449,746		3.7	%		463,424
	Accumulated Other
	Comprehensive Income (Loss)		26,051			(39,996	)	n/m			20,454
	Retained Earnings		239,135			205,841		16.2	%		229,500
	Total Shareholders' Equity		731,417			615,591		18.8	%		713,378
	Total Liabilities and
	Shareholders' Equity	$5,619,555			$5,568,526			0.9	%	$5,616,055
12. Income Statements.
		(unaudited, in thousands except per-share amounts)
								%
		Q4'2019			Q4'2018			Change		Q3'2019
	Interest & Fee Income:
	Loans	$14,103			$14,783			-4.6	%	$14,431
	Investment Securities:
	Equity Securities	103				98		5.0	%		92
	Debt Securities Available for Sale	20,067				16,865		19.0	%		18,736
	Debt Securities Held to Maturity	4,209				5,710		-26.3	%		4,535
	Interest-Bearing Cash	1,396				1,992		-29.9	%		1,901
	Total Interest & Fee Income	39,878				39,448		1.1	%		39,695
	Interest Expense:
	Transaction Deposits		89			124		-28.2	%		92
	Savings Deposits		215			227		-5.3	%		210
	Time Deposits		140			155		-9.6	%		145
	Short-Term Borrowed Funds		7			8		-16.5	%		8
	Total Interest Expense		451			514		-12.2	%		455
	Net Interest Income		39,427			38,934		1.3	%		39,240
	Provision for Loan Losses		-			-		n/m			-
	Noninterest Income:
	Service Charges		4,374			4,496		-2.7	%		4,510
	Merchant Processing Services		2,424			2,440		-0.7	%		2,494
	Debit Card Fees		1,568			1,685		-6.9	%		1,641
	Trust Fees		764			737		3.8	%		733
	ATM Processing Fees		696			703		-1.0	%		725
	Other Service Fees		513			620		-17.3	%		580
	Financial Services Commissions		122			112		9.7	%		75
	Securities Gains		167			14		n/m			-
	Other		1,104			1,090		1.3	%		1,051
	Total Noninterest Income		11,732			11,897		-1.4	%		11,809
	Noninterest Expense:
	Salaries and Benefits		12,297			13,055		-5.8	%		12,559
	Occupancy and Equipment		5,077			5,314		-4.5	%		5,199
	Outsourced Data Processing		2,361			2,299		2.7	%		2,374
	Professional Fees		674			565		19.3	%		645
	Courier Service		529			446		18.6	%		456
	Amortization of Identifiable Intangibles		73			447		-83.7	%		76
	Other		3,198			3,661		-12.6	%		2,724
	Total Noninterest Expense		24,209			25,787		-6.1	%		24,033
	Income Before Income Taxes		26,950			25,044		7.6	%		27,016
	Income Tax Provision		6,222			5,989		3.9	%		6,626
	Net Income	$20,728			$19,055			8.8	%	$20,390
	Average Common Shares Outstanding		27,050			26,729		1.2	%		26,986
	Diluted Common Shares Outstanding		27,094			26,815		1.0	%		27,027
	Per Common Share Data:
	Basic Earnings	$0.77			$0.71			8.5	%	$0.76
	Diluted Earnings		0.77			0.71		7.0	%		0.75
	Dividends Paid		0.41			0.40		2.5	%		0.41
								%
		12/31'19YTD			12/31'18YTD			Change
	Interest & Fee Income:
	Loans	$58,153			$59,030			-1.5	%
	Investment Securities:
	Equity Securities		392			354		10.9	%
	Debt Securities Available for Sale		74,147			60,383		22.8	%
	Debt Securities Held to Maturity		18,997			24,031		-20.9	%
	Interest-Bearing Cash		6,993			7,925		-11.8	%
	Total Interest & Fee Income		158,682			151,723		4.6	%
	Interest Expense:
	Transaction Deposits		422			373		13.2	%
	Savings Deposits		852			902		-5.5	%
	Time Deposits		580			647		-10.3	%
	Short-Term Borrowed Funds		34			37		-6.9	%
	Total Interest Expense		1,888			1,959		-3.6	%
	Net Interest Income		156,794			149,764		4.7	%
	Provision for Loan Losses		-			-		n/m
	Noninterest Income:
	Service Charges		17,882			18,508		-3.4	%
	Merchant Processing Services		10,132			9,630		5.2	%
	Debit Card Fees		6,357			6,643		-4.3	%
	Trust Fees		2,963			2,938		0.9	%
	ATM Processing Fees		2,776			2,752		0.9	%
	Other Service Fees		2,255			2,567		-12.2	%
	Life Insurance Gains		433			585		-26.0	%
	Financial Services Commissions		392			499		-21.4	%
	Securities Gains (Losses)		217			(52	)	n/m
	Other		4,001			4,079		-1.9	%
	Total Noninterest Income		47,408			48,149		-1.5	%
	Noninterest Expense:
	Salaries and Benefits		51,054			53,007		-3.7	%
	Occupancy and Equipment		20,240			19,679		2.9	%
	Outsourced Data Processing		9,471			9,229		2.6	%
	Professional Fees		2,465			2,842		-13.3	%
	Courier Service		1,878			1,779		5.6	%
	Loss Contingency (1)		553			3,500		n/m
	Amortization of Identifiable Intangibles		538			1,921		-72.0	%
	Other		12,787			14,959		-14.5	%
	Total Noninterest Expense		98,986			106,916		-7.4	%
	Income Before Income Taxes		105,216			90,997		15.6	%
	Income Tax Provision		24,827			19,433		27.8	%
	Net Income	$80,389			$71,564			12.3	%
	Average Common Shares Outstanding		26,956			26,649		1.2	%
	Diluted Common Shares Outstanding		27,006			26,756		0.9	%
	Per Common Share Data:
	Basic Earnings	$2.98			$2.69			10.8	%
	Diluted Earnings		2.98			2.67		11.6	%
	Dividends Paid		1.63			1.60		1.9	%
	Footnotes and Abbreviations:
	(1) In the second quarter 2019 and third quarter 2018, the Company recorded $553 thousand and $3.5 million in loss contingencies, respectively. The loss contingencies recorded in the second quarter 2019 include a $301 thousand increase in estimated customer refunds of revenue recognized prior to 2018 and a $252 thousand loss settlement to dismiss a lawsuit. The loss contingency recorded in the third quarter 2018 was the result of a mediated settlement to dismiss a lawsuit. The Company does not anticipate additional losses for these matters.
	(FTE) Fully Taxable Equivalent. The Company presents its net interest margin and net interest income on a FTE basis using the current statutory federal tax rate. Management believes the FTE basis is valuable to the reader because the Company’s loan and investment securities portfolios contain a relatively large portion of municipal loans and securities that are federally tax exempt. The Company’s tax exempt loans and securities composition may not be similar to that of other banks, therefore in order to reflect the impact of the federally tax exempt loans and securities on the net interest margin and net interest income for comparability with other banks, the Company presents its net interest margin and net interest income on a FTE basis.
	(a) Annualized
	Certain amounts in prior periods have been reclassified to conform to the current presentation.