Westamerica Bancorporation Reports First Quarter 2020 Financial Results

Nachrichtenquelle: globenewswire
16.04.2020, 16:48  |  113   |   |   

SAN RAFAEL, Calif., April 16, 2020 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the first quarter 2020 of $17.0 million and diluted earnings per common share ("EPS") of $0.63. First quarter 2020 results include a provision for credit losses of $4.3 million, which reduced EPS $0.11, representing Management’s estimate of additional reserves needed over the remaining life of its loans due to increased credit-risk from deteriorating economic conditions caused by the Covid-19 pandemic. These results compare to net income of $20.7 million and EPS of $0.77 for the fourth quarter 2019 and net income of $19.6 million and EPS of $0.73 for the first quarter 2019.

"Westamerica’s primary objective during the Covid-19 pandemic is to operate without interruption for our customers. As of today, our staffing levels are unaffected, our operating systems remain fully functional, and all but one of our branches are open. The business environment is highly uncertain at this time given the Covid-19 impacts on society and the economy. Westamerica’s annualized net interest margin increased to 3.10 percent for the first quarter 2020 from 3.08 percent in the fourth quarter 2019. Operating expenses were $24.7 million for the first quarter 2020, representing only 47 percent of revenues on a fully-taxable equivalent basis. First quarter 2020 results generated an annualized 9.7 percent return on average common equity, and shareholders were paid a $0.41 per common share dividend during the quarter,” said Chairman, President and CEO David Payne. “The well-being of our customers, employees and communities is of principal concern during this difficult period,” concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $40.5 million for the first quarter 2020, compared to $40.5 million for the fourth quarter 2019 and $40.2 million for the first quarter 2019. The annualized net interest margin (FTE) was 3.10 percent for the first quarter 2020, compared to 3.08 percent for the fourth quarter 2019 and 3.12 percent for the first quarter 2019. The Federal Open Market Committee (“FOMC”) reduced the interest rate paid on required reserves and excess reserve balances to 0.10 percent on March 16, 2020, which reduced the interest earned on Westamerica’s interest-bearing cash balances. Westamerica has taken loan applications under the United States Small Business Administration’s Paycheck Protection Program. Westamerica’s interest-bearing loans and investment securities are funded exclusively by shareholders’ equity and customers’ deposits. Checking and savings deposits represented ninety-six percent of the Company’s average deposit base during the first quarter 2020. Average deposit volumes during the first quarter 2020 of $4,829 million were stable compared to average deposit volumes during the fourth quarter 2019 and first quarter 2019 of $4,840 million and $4,835 million, respectively. The Company has no debt.

The Company adopted Accounting Standards Update 2016-13, “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments” (“CECL”), effective January 1, 2020 with a net-of-tax increase to shareholders’ equity of $52 thousand. The Covid-19 environment, which developed after the CECL implementation, has caused deteriorating economic conditions, including a record number of California-based initial claims for unemployment in March 2020. Management expects developing increases in unemployment to result in higher credit-related losses, particularly consumer installment loans. The Company has been actively working with consumer and commercial borrowers requesting deferral of loan payments. The Company recognized a $4.3 million provision for credit losses in the first quarter 2020 representing Management’s estimate of additional reserves needed over the remaining life of its loans due to increased credit-risk from deteriorating economic conditions caused by the Covid-19 pandemic.

Noninterest income for the first quarter 2020 totaled $11.6 million, compared to $11.7 million for the fourth quarter 2019, and $11.6 million for the first quarter 2019. First quarter 2020 non-interest income includes a $603 thousand receipt on a purchased loan, representing the recovery of a purchased loan credit-risk discount. During the month of March 2020, activity-based fees related to deposit accounts and merchant processing fees were lower due to reduced economic activity related to the Covid-19 pandemic.

Noninterest expense for the first quarter 2020 was $455 thousand higher than noninterest expense for the fourth quarter 2019 due to higher personnel costs offset in part by lower professional fees. Noninterest expense for the first quarter 2020 was $519 thousand lower than noninterest expense for the first quarter 2019 due to lower occupancy and equipment costs, professional fees, FDIC assessments and amortization of intangible assets. First quarter 2020 noninterest expense reflects application of a $246 thousand FDIC insurance assessment credit; the Company’s credit is fully exhausted.

The tax rate (FTE) applied to pre-tax income (FTE) was 27.0 percent for the first quarter 2020, compared to 26.0 percent for the fourth quarter 2019 and 26.3 percent for the first quarter 2019. The lower tax rate for the fourth quarter 2019 is due to a customary adjustment to true-up the Company’s 2018 estimated tax provision to the filed 2018 tax return. The lower tax rate for the first quarter 2019 is due to higher tax deductions from the exercise of employee stock options.

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 – SVP & Treasurer
  707-863-6840
  investments@westamerica.com

FORWARD-LOOKING INFORMATION:

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

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

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the Form 8-K filed on April 16, 2020, the annual report for the year ended December 31, 2019 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 pandemic, 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.



WESTAMERICA BANCORPORATION      
FINANCIAL HIGHLIGHTS        
March 31, 2020        
           
1. Net Income Summary.        
    (in thousands except per-share amounts)
        %  
    Q1'2020 Q1'2019 Change Q4'2019
           
  Net Interest and Fee Income (FTE) $ 40,547   $ 40,247   0.7 % $ 40,481  
  Provision for Credit Losses   4,300     -   n/m     -  
  Noninterest Income   11,648     11,579   0.6 %   11,732  
  Noninterest Expense   24,664     25,183   -2.1 %   24,209  
  Income Before Taxes (FTE)   23,231     26,643   -12.8 %   28,004  
  Income Tax Provision (FTE)   6,269     6,997   -10.4 %   7,276  
  Net Income $ 16,962   $ 19,646   -13.7 % $ 20,728  
           
  Average Common Shares Outstanding   27,068     26,841   0.8 %   27,050  
  Diluted Average Common Shares   27,139     26,912   0.8 %   27,094  
           
  Operating Ratios:        
  Basic Earnings Per Common Share $ 0.63   $ 0.73   -14.2 % $ 0.77  
  Diluted Earnings Per Common Share $ 0.63     0.73   -14.4 %   0.77  
  Return On Assets (a)   1.21 %   1.42 %     1.46 %
  Return On Common Equity (a)   9.7 %   12.2 %     11.8 %
  Net Interest Margin (FTE) (a)   3.10 %   3.12 %     3.08 %
  Efficiency Ratio (FTE)   47.3 %   48.6 %     46.4 %
           
  Dividends Paid Per Common Share $ 0.41   $ 0.40   2.5 % $ 0.41  
  Common Dividend Payout Ratio   66 %   55 %     53 %
           
2. Net Interest Income.        
    (dollars in thousands)
        %  
    Q1'2020 Q1'2019 Change Q4'2019
           
  Interest and Fee Income (FTE) $ 40,989   $ 40,741   0.6 % $ 40,932  
  Interest Expense   442     494   -10.5 %   451  
  Net Interest and Fee Income (FTE) $ 40,547   $ 40,247   0.7 % $ 40,481  
           
  Average Earning Assets $ 5,242,142   $ 5,184,978   1.1 % $ 5,243,783  
  Average Interest-        
    Bearing Liabilities   2,648,581     2,689,684   -1.5 %   2,599,703  
           
  Yield on Earning Assets (FTE) (a)   3.13 %   3.16 %     3.11 %
  Cost of Funds (a)   0.03 %   0.04 %     0.03 %
  Net Interest Margin (FTE) (a)   3.10 %   3.12 %     3.08 %
  Interest Expense/        
    Interest-Bearing Liabilities (a)   0.07 %   0.08 %     0.07 %
  Net Interest Spread (FTE) (a)   3.06 %   3.08 %     3.04 %
           
3. Loans & Other Earning Assets.        
    (average volume, dollars in thousands)
        %  
    Q1'2020 Q1'2019 Change Q4'2019
           
  Total Assets $ 5,655,460   $ 5,611,762   0.8 % $ 5,645,013  
  Total Earning Assets   5,242,142     5,184,978   1.1 %   5,243,783  
  Total Loans   1,123,934     1,205,656   -6.8 %   1,116,446  
    Commercial Loans   223,383     281,465   -20.6 %   219,710  
    Commercial RE Loans   579,743     580,178   -0.1 %   568,892  
    Consumer Loans   320,808     344,013   -6.7 %   327,844  
  Total Investment Securities   3,845,885     3,689,852   4.2 %   3,792,781  
    Equity Securities   -     1,748   n/m     -  
    Debt Securities Available For Sale   3,135,743     2,734,658   14.7 %   3,027,461  
    Debt Securities Held To Maturity   710,142     953,446   -25.5 %   765,320  
  Total Interest-Bearing Cash   272,323     289,470   -5.9 %   334,556  
           
  Loans/Deposits   23.3 %   24.9 %     23.1 %
           
4. Deposits, Other Interest-Bearing Liabilities & Equity.    
    (average volume, dollars in thousands)
        %  
    Q1'2020 Q1'2019 Change Q4'2019
           
  Total Deposits $ 4,828,988   $ 4,834,690   -0.1 % $ 4,839,552  
    Noninterest Demand   2,222,737     2,204,232   0.8 %   2,279,615  
    Interest-Bearing Transaction   941,720     946,458   -0.5 %   922,772  
    Savings   1,496,362     1,492,100   0.3 %   1,464,206  
    Time greater than $100K   73,849     82,796   -10.8 %   75,314  
    Time less than $100K   94,320     109,104   -13.6 %   97,645  
  Total Short-Term Borrowings   42,330     59,226   -28.5 %   39,766  
  Shareholders' Equity   705,330     655,380   7.6 %   694,709  
           
  Demand Deposits/        
    Total Deposits   46.0 %   45.6 %     47.1 %
  Transaction & Savings        
    Deposits / Total Deposits   96.5 %   96.0 %     96.4 %
           
5. Interest Yields Earned & Rates Paid.      
    (dollars in thousands)  
    Q1'2020  
    Average Income/ Yield (a) /  
    Volume Expense Rate  
  Interest & Fee Income Earned        
    Total Earning Assets (FTE) $ 5,242,142   $ 40,989   3.13 %  
    Total Loans (FTE)   1,123,934     13,910   4.98 %  
    Commercial Loans (FTE)   223,383     2,776   5.00 %  
    Commercial RE Loans   579,743     7,599   5.27 %  
    Consumer Loans   320,808     3,535   4.43 %  
    Total Investments (FTE)   3,845,885     26,223   2.73 %  
    Total Interest-Bearing Cash   272,323     856   1.24 %  
           
  Interest Expense Paid        
    Total Earning Assets   5,242,142     442   0.03 %  
    Total Interest-Bearing Liabilities   2,648,581     442   0.07 %  
    Total Interest-Bearing Deposits   2,606,251     434   0.07 %  
    Interest-Bearing Transaction   941,720     84   0.04 %  
    Savings   1,496,362     217   0.06 %  
    Time less than $100K   94,320     54   0.23 %  
    Time greater than $100K   73,849     79   0.43 %  
    Total Short-Term Borrowings   42,330     8   0.07 %  
           
  Net Interest Income and        
  Margin (FTE)   $ 40,547   3.10 %  
           
    Q1'2019  
    Average Income/ Yield (a) /  
    Volume Expense Rate  
  Interest & Fee Income Earned        
    Total Earning Assets (FTE) $ 5,184,978   $ 40,741   3.16 %  
    Total Loans (FTE)   1,205,656     14,908   5.01 %  
    Commercial Loans (FTE)   281,465     3,766   5.43 %  
    Commercial RE Loans   580,178     7,577   5.30 %  
    Consumer Loans   344,013     3,565   4.19 %  
    Total Investments (FTE)   3,689,852     24,095   2.61 %  
    Total Interest-Bearing Cash   289,470     1,738   2.40 %  
           
  Interest Expense Paid        
    Total Earning Assets   5,184,978     494   0.04 %  
    Total Interest-Bearing Liabilities   2,689,684     494   0.08 %  
    Total Interest-Bearing Deposits   2,630,458     485   0.07 %  
    Interest-Bearing Transaction   946,458     121   0.05 %  
    Savings   1,492,100     216   0.06 %  
    Time less than $100K   109,104     66   0.24 %  
    Time greater than $100K   82,796     82   0.40 %  
    Total Short-Term Borrowings   59,226     9   0.06 %  
           
  Net Interest Income and        
  Margin (FTE)   $ 40,247   3.12 %  
           
6. Noninterest Income.        
    (dollars in thousands except per-share amounts)
        %  
    Q1'2020 Q1'2019 Change Q4'2019
           
  Service Charges on Deposits $ 4,248   $ 4,504   -5.7 % $ 4,374  
  Merchant Processing Services   2,358     2,558   -7.8 %   2,424  
  Debit Card Fees   1,468     1,507   -2.6 %   1,568  
  Trust Fees   777     717   8.4 %   764  
  ATM Processing Fees   579     633   -8.5 %   696  
  Other Service Fees   506     577   -12.3 %   513  
  Financial Services Commissions   125     101   24.6 %   122  
  Securities Gains   -     24   n/m     167  
  Other Income (3)   1,587     958   65.7 %   1,104  
  Total Noninterest Income $ 11,648   $ 11,579   0.6 % $ 11,732  
           
    Total Revenue (FTE) $ 52,195   $ 51,826   0.7 % $ 52,213  
    Noninterest Income/Revenue (FTE)   22.3 %   22.3 %     22.5 %
    Service Charges/Avg. Deposits (a)   0.35 %   0.38 %     0.36 %
    Total Revenues (FTE) Per Avg.        
  Common Share (a) $ 7.76   $ 7.83   -1.0 % $ 7.66  
           
7. Noninterest Expense.        
    (dollars in thousands)
        %  
    Q1'2020 Q1'2019 Change Q4'2019
           
  Salaries & Benefits $ 13,018   $ 13,108   -0.7 % $ 12,297  
  Occupancy and Equipment   4,932     5,048   -2.3 %   5,077  
  Outsourced Data Processing   2,405     2,369   1.5 %   2,361  
  Courier Service   491     442   11.0 %   529  
  Professional Fees   389     665   -41.5 %   674  
  Amortization of        
    Identifiable Intangibles   73     310   -76.5 %   73  
  Other Operating   3,356     3,241   3.5 %   3,198  
  Total Noninterest Expense $ 24,664   $ 25,183   -2.1 % $ 24,209  
           
  Noninterest Expense/        
    Avg. Earning Assets (a)   1.89 %   1.97 %     1.83 %
  Noninterest Expense/Revenues (FTE)   47.3 %   48.6 %     46.4 %
           
8. Allowance for Credit Losses.        
    (dollars in thousands)
        %  
    Q1'2020 Q1'2019 Change Q4'2019
           
  Average Total Loans $ 1,123,934   $ 1,205,656   -6.8 % $ 1,116,446  
           
  Prior Period Allowance for        
  Credit Losses (Loans) (ACLL) $ 19,484   $ 21,351   -8.7 % $ 19,828  
  Adoption of ASU 2016-13 (1)   2,017     -   n/m     -  
  Beginning of Period ACLL   21,501     21,351   0.7 %   19,828  
  Provision for Credit Losses   4,300     -   n/m     -  
  Net ACLL Losses   (997 )   (874 ) 14.2 %   (344 )
  End of Period ACLL $ 24,804   $ 20,477   21.1 % $ 19,484  
  Gross ACLL Recoveries /        
  Gross ACLL Losses   37 %   37 %     71 %
  Net ACLL Losses /        
  Avg. Total Loans (a)   0.36 %   0.29 %     0.12 %
           
    (dollars in thousands)
        %  
    3/31/20 3/31/19 Change 12/31/19
  Allowance for Credit Losses (Loans) $ 24,804   $ 20,477   21.1 % $ 19,484  
  Allowance for Credit Losses        
  (HTM Securities)   16     -   n/m     -  
  Total Allowance for Credit Losses $ 24,820   $ 20,477   21.2 % $ 19,484  
           
  Allowance for Unfunded        
  Credit Commitments   53     2,308   -97.7 %   2,160  
           
9. Credit Quality.        
    (dollars in thousands)
        %  
    3/31/20 3/31/19 Change 12/31/19
  Nonperforming Loans:        
    Nonperforming Nonaccrual $ 419   $ 330   27.0 % $ 659  
    Performing Nonaccrual   3,933     3,670   7.2 %   3,781  
  Total Nonaccrual Loans   4,352     4,000   8.8 %   4,440  
  90+ Days Past Due Accruing Loans   178     394   -54.8 %   440  
  Total   4,530     4,394   3.1 %   4,880  
  Repossessed Loan Collateral   43     43   -0.9 %   43  
   Total Nonperforming Assets $ 4,573   $ 4,437   3.1 % $ 4,923  
           
  Total Loans Outstanding $ 1,121,243   $ 1,204,844   -6.9 % $ 1,126,664  
           
  Total Assets $ 5,628,126   $ 5,555,961   1.3 % $ 5,619,555  
           
  Loans:        
  Allowance for Credit Losses (Loans) $ 24,804   $ 20,477   21.1 % $ 19,484  
  Allowance for Credit Losses (Loans) /      
  Loans   2.21 %   1.70 %     1.73 %
  Nonperforming Loans/Total Loans   0.40 %   0.36 %     0.43 %
           
10. Capital.        
    (in thousands, except per-share amounts)
        %  
    3/31/20 3/31/19 Change 12/31/19
           
  Shareholders' Equity $ 705,546   $ 656,767   7.4 % $ 731,417  
  Total Assets   5,628,126     5,555,961   1.3 %   5,619,555  
  Shareholders' Equity/        
    Total Assets   12.54 %   11.82 %     13.02 %
  Shareholders' Equity/        
    Total Loans   62.93 %   54.51 %     64.92 %
  Tangible Common Equity Ratio   10.58 %   9.82 %     11.07 %
  Common Shares Outstanding   26,932     26,901   0.1 %   27,062  
  Common Equity Per Share $ 26.20   $ 24.41   7.3 % $ 27.03  
  Market Value Per Common Share $ 58.78   $ 61.80   -4.9 % $ 67.77  
           
  Share Repurchase Programs        
    (shares in thousands)
        %  
    Q1'2020 Q1'2019 Change Q4'2019
           
  Total Shares Repurchased   180     -   n/m     -  
    Average Repurchase Price $ 51.52   $ -   n/m   $ -  
  Net Shares Repurchased (Issued)   130     (171 ) n/m     (48 )
           
11. Period-End Balance Sheets.        
    (unaudited, dollars in thousands)
        %  
    3/31/20 3/31/19 Change 12/31/19
  Assets:        
    Cash and Due from Banks $ 304,628   $ 421,788   -27.8 % $ 373,421  
           
    Investment Securities:        
    Equity Securities   -     1,771   n/m     -  
    Debt Securities Available For Sale   3,210,689     2,702,240   18.8 %   3,078,846  
    Debt Securities Held To Maturity (2)   681,821     923,190   -26.1 %   738,072  
           
    Loans   1,121,243     1,204,844   -6.9 %   1,126,664  
    Allowance For Credit Losses (Loans)   (24,804 )   (20,477 ) 21.1 %   (19,484 )
    Total Loans, net   1,096,439     1,184,367   -7.4 %   1,107,180  
           
    Other Real Estate Owned   43     43   0.0 %   43  
    Premises and Equipment, net   35,403     33,934   4.3 %   34,597  
    Identifiable Intangibles, net   1,318     1,619   -18.6 %   1,391  
    Goodwill   121,673     121,673   0.0 %   121,673  
    Other Assets   176,112     165,336   6.5 %   164,332  
           
  Total Assets $ 5,628,126   $ 5,555,961   1.3 % $ 5,619,555  
           
  Liabilities and Shareholders' Equity:        
    Deposits:        
    Noninterest-Bearing $ 2,183,283   $ 2,179,803   0.2 % $ 2,240,112  
    Interest-Bearing Transaction   936,516     941,379   -0.5 %   931,888  
    Savings   1,514,431     1,482,187   2.2 %   1,471,284  
    Time   165,196     189,215   -12.7 %   169,337  
    Total Deposits   4,799,426     4,792,584   0.1 %   4,812,621  
           
    Short-Term Borrowed Funds   52,664     58,317   -9.7 %   30,928  
    Other Liabilities   70,490     48,293   46.0 %   44,589  
  Total Liabilities   4,922,580     4,899,194   0.5 %   4,888,138  
           
  Shareholders' Equity:        
    Common Equity:        
    Paid-In Capital   466,472     456,075   2.3 %   466,231  
    Accumulated Other        
    Comprehensive Income (Loss)   171     (11,249 ) n/m     26,051  
    Retained Earnings   238,903     211,941   12.7 %   239,135  
  Total Shareholders' Equity   705,546     656,767   7.4 %   731,417  
           
  Total Liabilities and        
    Shareholders' Equity $ 5,628,126   $ 5,555,961   1.3 % $ 5,619,555  
           
12. Income Statements.        
    (unaudited, in thousands except per-share amounts)
        %  
    Q1'2020 Q1'2019 Change Q4'2019
  Interest & Fee Income:        
    Loans $ 13,809   $ 14,797   -6.7 % $ 14,103  
    Investment Securities:        
    Equity Securities   103     98   5.1 %   103  
    Debt Securities Available For Sale   21,315     17,521   21.7 %   20,067  
    Debt Securities Held To Maturity   3,908     5,329   -26.7 %   4,209  
    Interest-Bearing Cash   856     1,738   -50.7 %   1,396  
  Total Interest & Fee Income   39,991     39,483   1.3 %   39,878  
           
  Interest Expense:        
    Transaction Deposits   84     121   -31.1 %   89  
    Savings Deposits   217     216   0.4 %   215  
    Time Deposits   133     148   -9.6 %   140  
    Short-Term Borrowed Funds   8     9   -11.6 %   7  
  Total Interest Expense   442     494   -10.5 %   451  
           
  Net Interest Income   39,549     38,989   1.4 %   39,427  
           
  Provision for Credit Losses   4,300     -   n/m     -  
           
  Noninterest Income:        
    Service Charges   4,248     4,504   -5.7 %   4,374  
    Merchant Processing Services   2,358     2,558   -7.8 %   2,424  
    Debit Card Fees   1,468     1,507   -2.6 %   1,568  
    Trust Fees   777     717   8.4 %   764  
    ATM Processing Fees   579     633   -8.5 %   696  
    Other Service Fees   506     577   -12.3 %   513  
    Financial Services Commissions   125     101   24.6 %   122  
    Securities Gains   -     24   n/m     167  
    Other Income (3)   1,587     958   65.7 %   1,104  
  Total Noninterest Income   11,648     11,579   0.6 %   11,732  
           
  Noninterest Expense:        
    Salaries and Benefits   13,018     13,108   -0.7 %   12,297  
    Occupancy and Equipment   4,932     5,048   -2.3 %   5,077  
    Outsourced Data Processing   2,405     2,369   1.5 %   2,361  
    Courier Service   491     442   11.0 %   529  
    Professional Fees   389     665   -41.5 %   674  
    Amortization of Identifiable Intangibles   73     310   -76.5 %   73  
    Other   3,356     3,241   3.5 %   3,198  
  Total Noninterest Expense   24,664     25,183   -2.1 %   24,209  
           
  Income Before Income Taxes   22,233     25,385   -12.4 %   26,950  
  Income Tax Provision   5,271     5,739   -8.2 %   6,222  
  Net Income $ 16,962   $ 19,646   -13.7 % $ 20,728  
           
  Average Common Shares Outstanding   27,068     26,841   0.8 %   27,050  
  Diluted Common Shares Outstanding   27,139     26,912   0.8 %   27,094  
           
  Per Common Share Data:        
    Basic Earnings $ 0.63   $ 0.73   -13.7 % $ 0.77  
    Diluted Earnings   0.63     0.73   -13.7 %   0.77  
    Dividends Paid   0.41     0.40   2.5 %   0.41  
           
           
  Footnotes and Abbreviations:        
           
  (1) Effective January 1, 2020, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments ("CECL"), resulting in a period opening adjustment to the allowance for loan losses, held-to-maturity debt securities, other liabilities, deferred tax assets, and shareholders' equity.
           
  (2) The Company adopted ASU 2016-13, effective January 1, 2020. Debt Securities Held To Maturity at March 31, 2020, of $681,821 thousand is net of related reserve for expected credit losses of $16 thousand.
           
  (3) The Company received $603 thousand in excess of amounts charged-off in prior periods on a purchased loan during the quarter ending March 31, 2020, representing the recovery of a purchased loan credit-risk discount.
           
  (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.

 



 

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