Westamerica Bancorporation Reports Fourth Quarter 2020 Financial Results

SAN RAFAEL, Calif., Jan. 21, 2021 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the fourth quarter 2020 of $23.8 million and diluted earnings per common share ("EPS") of $0.89. Fourth quarter 2020 results include a gain on sale of a closed branch building, make-whole interest income on corporate bonds redeemed prior to maturity, and a customary adjustment to the tax provision for the filed 2019 tax returns which increased EPS $0.15. These results compare to net income of $20.1 million and EPS of $0.74 for the third quarter 2020 and net income of $20.7 million and EPS of $0.77 for the fourth quarter 2019.

"Westamerica remains focused on maintaining superior customer service during the pandemic. In keeping all our branches open, we are following all health orders affecting our business to provide a safe environment for our customers and employees. Operating expenses were $24.5 million for the fourth quarter 2020, representing only 43 percent of revenues on a fully-taxable equivalent basis. Westamerica’s revenues continue to reflect current operating conditions, including reduced demand for certain bank products and services due to the pandemic, and low market interest rates. Credit quality remained stable with nonperforming loans of $4.8 million at December 31, 2020,” said Chairman, President and CEO David Payne. “Fourth quarter 2020 results generated an annualized 13.2 percent return on average common equity, and shareholders were paid a $0.41 per common share dividend during the quarter,” concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $43.3 million for the fourth quarter 2020, including make-whole interest income on called corporate bonds of $1.9 million. Fourth quarter 2020 net interest income (FTE) compares to $41.8 million for the third quarter 2020 and $40.5 million for the fourth quarter 2019. Average total deposits grew $123 million from the third quarter 2020 to the fourth quarter 2020. Checking and savings deposits represented ninety-seven percent of the Company’s average deposit base during the fourth quarter 2020 generating a 0.03 percent annualized cost of funding interest-earning assets.

At December 31, 2020, nonperforming loans totaled $4.8 million and the allowance for credit losses on loans was $23.9 million. The Company continues to work with loan customers requesting deferral of loan payments due to economic weakness caused by the pandemic. At December 31, 2020, consumer loans granted loan deferrals totaled $2.5 million, commercial real estate loans with deferred payments totaled $7.8 million, primarily for hospitality, restaurant and retail properties, and commercial loans with deferred payments totaled $33 thousand. The commercial real estate loans with deferred payments are seasoned with low loan-to-value ratios.

Noninterest income for the fourth quarter 2020 totaled $14.0 million, including a $3.5 million gain on sale of a closed branch building. Noninterest income was $10.5 million and $11.7 million for the third quarter 2020 and fourth quarter 2019, respectively.

Noninterest expense for the fourth quarter 2020 was $24.5 million compared to $24.6 million for the third quarter 2020 and $24.2 million for the fourth quarter 2019.

The tax rate (FTE) applied to pre-tax income (FTE) was 27.1 percent for the fourth quarter 2020 compared to 27.5 percent for the third quarter 2020 and 26.0 percent for the fourth quarter 2019. The fourth quarter 2020 tax provision was reduced by $250 thousand resulting from a customary adjustment to true-up the Company’s 2019 estimated tax provision to the filed 2019 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 – SVP & 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, 2019 filed on Form 10-K and quarterly report for the quarter ended September 30, 2020 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 21, 2021
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
December 31, 2020
1. Net Income Summary.
		(in thousands except per-share amounts)
								%
		Q4'2020			Q4'2019			Change		Q3'2020
	Net Interest and Fee Income (FTE)	$43,292			$40,481			6.9	%	$41,780
	Provision for Credit Losses		-			-		n/m			-
	Noninterest Income		13,959			11,732		19.0	%		10,476
	Noninterest Expense		24,545			24,209		1.4	%		24,603
	Income Before Taxes (FTE)		32,706			28,004		16.8	%		27,653
	Income Tax Provision (FTE)		8,868			7,276		21.9	%		7,602
	Net Income	$23,838			$20,728			15.0	%	$20,051
	Average Common Shares Outstanding		26,838			27,050		-0.8	%		26,930
	Diluted Average Common Shares		26,849			27,094		-0.9	%		26,946
	Operating Ratios:
	Basic Earnings Per Common Share	$0.89			$0.77			15.6	%	$0.74
	Diluted Earnings Per Common Share		0.89			0.77		15.6	%		0.74
	Return On Assets (a)		1.44	%		1.46	%				1.24	%
	Return On Common Equity (a)		13.2	%		11.8	%				11.2	%
	Net Interest Margin (FTE) (a)		2.81	%		3.08	%				2.78	%
	Efficiency Ratio (FTE)		42.9	%		46.4	%				47.1	%
	Dividends Paid Per Common Share	$0.41			$0.41			0.0	%	$0.41
	Common Dividend Payout Ratio		46	%		54	%				55	%
								%
		12/31'20YTD			12/31'19YTD			Change
	Net Interest and Fee Income (FTE)	$167,682			$161,406			3.9	%
	Provision for Credit Losses		4,300			-		n/m
	Noninterest Income		45,637			47,408		-3.7	%
	Noninterest Expense		98,566			98,986		-0.4	%
	Income Before Taxes (FTE)		110,453			109,828		0.6	%
	Income Tax Provision (FTE)		30,040			29,439		2.0	%
	Net Income	$80,413			$80,389			0.0	%
	Average Common Shares Outstanding		26,942			26,956		0.0	%
	Diluted Average Common Shares		26,960			27,006		-0.2	%
	Operating Ratios:
	Basic Earnings Per Common Share	$2.98			$2.98			0.0	%
	Diluted Earnings Per Common Share		2.98			2.98		0.0	%
	Return On Assets		1.30	%		1.44	%
	Return On Common Equity		11.3	%		11.9	%
	Net Interest Margin (FTE)		2.91	%		3.11	%
	Efficiency Ratio (FTE)		46.2	%		47.4	%
	Dividends Paid Per Common Share	$1.64			$1.63			0.6	%
	Common Dividend Payout Ratio		55	%		55	%
2. Net Interest Income.
		(dollars in thousands)
								%
		Q4'2020			Q4'2019			Change		Q3'2020
	Interest and Fee Income (FTE)	$43,773			$40,932			6.9	%	$42,246
	Interest Expense		481			451		6.7	%		466
	Net Interest and Fee Income (FTE)	$43,292			$40,481			6.9	%	$41,780
	Average Earning Assets	$6,156,749			$5,243,783			17.4	%	$6,001,287
	Average Interest-
	Bearing Liabilities		3,034,240			2,599,703		16.7	%		2,931,717
	Yield on Earning Assets (FTE) (a)		2.84	%		3.11	%				2.81	%
	Cost of Funds (a)		0.03	%		0.03	%				0.03	%
	Net Interest Margin (FTE) (a)		2.81	%		3.08	%				2.78	%
	Interest Expense/
	Interest-Bearing Liabilities (a)		0.06	%		0.07	%				0.06	%
	Net Interest Spread (FTE) (a)		2.78	%		3.04	%				2.75	%
								%
		12/31'20YTD			12/31'19YTD			Change
	Interest and Fee Income (FTE)	$169,506			$163,294			3.8	%
	Interest Expense		1,824			1,888		-3.4	%
	Net Interest and Fee Income (FTE)	$167,682			$161,406			3.9	%
	Average Earning Assets	$5,760,548			$5,191,276			11.0	%
	Average Interest-
	Bearing Liabilities		2,847,988			2,630,370		8.3	%
	Yield on Earning Assets (FTE)		2.94	%		3.14	%
	Cost of Funds		0.03	%		0.03	%
	Net Interest Margin (FTE)		2.91	%		3.11	%
	Interest Expense/
	Interest-Bearing Liabilities		0.06	%		0.07	%
	Net Interest Spread (FTE)		2.88	%		3.07	%
3. Loans & Other Earning Assets.
		(average volume, dollars in thousands)
								%
		Q4'2020			Q4'2019			Change		Q3'2020
	Total Assets	$6,562,753			$5,645,013			16.3	%	$6,414,399
	Total Earning Assets		6,156,749			5,243,783		17.4	%		6,001,287
	Total Loans		1,286,480			1,116,446		15.2	%		1,312,758
	Total Commercial Loans		426,564			219,710		94.1	%		444,091
	Paycheck Protection Program (PPP) Loans		227,828			-		n/m			243,104
	Commercial Loans		198,736			219,710		-9.5	%		200,987
	Commercial RE Loans		561,394			568,892		-1.3	%		566,626
	Consumer Loans		298,522			327,844		-8.9	%		302,041
	Total Investment Securities		4,430,592			3,792,781		16.8	%		4,360,119
	Debt Securities Available For Sale		3,884,451			3,027,461		28.3	%		3,750,737
	Debt Securities Held To Maturity		546,141			765,320		-28.6	%		609,382
	Total Interest-Bearing Cash		439,677			334,556		31.4	%		328,410
	Loans/Deposits		22.7	%		23.1	%				23.7	%
								%
		12/31'20YTD			12/31'19YTD			Change
	Total Assets	$6,174,470			$5,597,109			10.3	%
	Total Earning Assets		5,760,548			5,191,276		11.0	%
	Total Loans		1,239,144			1,161,779		6.7	%
	Total Commercial Loans		359,937			248,586		44.8	%
	PPP Loans		151,320			-		n/m
	Commercial Loans		208,617			248,586		-16.1	%
	Commercial RE Loans		571,543			577,539		-1.0	%
	Consumer Loans		307,664			335,654		-8.3	%
	Total Investment Securities		4,149,960			3,704,764		12.0	%
	Equity Securities		-			961		n/m
	Debt Securities Available For Sale		3,517,633			2,844,542		23.7	%
	Debt Securities Held To Maturity		632,327			859,261		-26.4	%
	Total Interest-Bearing Cash		371,444			324,733		14.4	%
	Loans/Deposits		23.4	%		24.2	%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
		(average volume, dollars in thousands)
								%
		Q4'2020			Q4'2019			Change		Q3'2020
	Total Deposits	$5,655,768			$4,839,552			16.9	%	$5,533,144
	Noninterest Demand		2,736,348			2,279,615		20.0	%		2,695,458
	Interest-Bearing Transaction		1,071,576			922,772		16.1	%		1,039,833
	Savings		1,688,031			1,464,206		15.3	%		1,634,814
	Time greater than $100K		71,306			75,314		-5.3	%		72,045
	Time less than $100K		88,507			97,645		-9.4	%		90,994
	Total Short-Term Borrowings		114,820			39,766		188.7	%		94,031
	Shareholders' Equity		720,473			694,709		3.7	%		714,400
	Demand Deposits/
	Total Deposits		48.4	%		47.1	%				48.7	%
	Transaction & Savings
	Deposits / Total Deposits		97.2	%		96.4	%				97.1	%
								%
		12/31'20YTD			12/31'19YTD			Change
	Total Deposits	$5,306,177			$4,801,804			10.5	%
	Noninterest Demand		2,538,819			2,222,876		14.2	%
	Interest-Bearing Transaction		1,008,758			932,524		8.2	%
	Savings		1,594,718			1,464,080		8.9	%
	Time greater than $100K		72,363			78,925		-8.3	%
	Time less than $100K		91,519			103,399		-11.5	%
	Total Short-Term Borrowings		80,456			51,442		56.4	%
	Other Borrowed Funds		174			-		n/m
	Shareholders' Equity		711,554			675,512		5.3	%
	Demand Deposits/
	Total Deposits		47.8	%		46.3	%
	Transaction & Savings
	Deposits / Total Deposits		96.9	%		96.2	%
5. Interest Yields Earned & Rates Paid.
		(dollars in thousands)
		Q4'2020
		Average			Income/			Yield (a) /
		Volume			Expense			Rate (a)
	Interest & Fee Income Earned
	Total Earning Assets (FTE)	$6,156,749			$43,773			2.84	%
	Total Loans (FTE)		1,286,480			15,103		4.67	%
	Total Commercial Loans (FTE)		426,564			4,459		4.16	%
	PPP Loans		227,828			2,342		4.08	%
	Commercial Loans (FTE)		198,736			2,117		4.24	%
	Commercial RE Loans		561,394			7,288		5.16	%
	Consumer Loans		298,522			3,356		4.47	%
	Total Investments (FTE)		4,430,592			28,558		2.58	%
	Total Interest-Bearing Cash		439,677			112		0.10	%
	Interest Expense Paid
	Total Earning Assets		6,156,749			481		0.03	%
	Total Interest-Bearing Liabilities		3,034,240			481		0.06	%
	Total Interest-Bearing Deposits		2,919,420			462		0.06	%
	Interest-Bearing Transaction		1,071,576			90		0.03	%
	Savings		1,688,031			246		0.06	%
	Time less than $100K		88,507			45		0.20	%
	Time greater than $100K		71,306			81		0.45	%
	Total Short-Term Borrowings		114,820			19		0.07	%
	Net Interest Income and
	Margin (FTE)				$43,292			2.81	%
		Q4'2019
		Average			Income/			Yield (a) /
		Volume			Expense			Rate (a)
	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	%
6. Noninterest Income.
		(dollars in thousands except per-share amounts)
								%
		Q4'2020			Q4'2019			Change		Q3'2020
	Service Charges on Deposits	$3,452			$4,374			-21.1	%	$3,298
	Merchant Processing Services		2,713			2,424		11.9	%		2,860
	Debit Card Fees		1,643			1,568		4.8	%		1,611
	Trust Fees		765			764		0.1	%		756
	ATM Processing Fees		570			696		-18.1	%		606
	Other Service Fees		457			513		-10.9	%		454
	Financial Services Commissions		66			122		-45.9	%		58
	Gains on Sales of Real Property		3,536			-		n/m			-
	Securities Gains		-			167		n/m			-
	Other Operating		757			1,104		-31.4	%		833
	Total Noninterest Income	$13,959			$11,732			19.0	%	$10,476
	Total Revenue (FTE)	$57,251			$52,213			9.6	%	$52,256
	Noninterest Income/Revenue (FTE)		24.4	%		22.5	%				20.0	%
	Service Charges/Avg. Deposits (a)		0.24	%		0.36	%				0.24	%
	Total Revenues (FTE) Per Avg.
	Common Share (a)	$8.49			$7.66			10.9	%	$7.72
								%
		12/31'20YTD			12/31'19YTD			Change
	Service Charges on Deposits	$14,149			$17,882			-20.9	%
	Merchant Processing Services		10,208			10,132		0.8	%
	Debit Card Fees		6,181			6,357		-2.8	%
	Trust Fees		3,012			2,963		1.6	%
	ATM Processing Fees		2,273			2,776		-18.1	%
	Other Service Fees		1,837			2,255		-18.5	%
	Financial Services Commissions		372			392		-5.1	%
	Gains on Sales of Real Property		3,536			-		n/m
	Life Insurance Gains		-			433		n/m
	Securities Gains		71			217		n/m
	Other Operating (6)		3,998			4,001		-0.1	%
	Total Noninterest Income	$45,637			$47,408			-3.7	%
	Total Revenue (FTE)	$213,319			$208,814			2.2	%
	Noninterest Income/Revenue (FTE)		21.4	%		22.7	%
	Service Charges/Avg. Deposits		0.27	%		0.37	%
	Total Revenues (FTE) Per Avg./
	Common Share	$7.92			$7.75			2.2	%
7. Noninterest Expense.
		(dollars in thousands)
								%
		Q4'2020			Q4'2019			Change		Q3'2020
	Salaries & Benefits	$12,291			$12,297			0.0	%	$12,540
	Occupancy and Equipment		4,900			5,077		-3.5	%		5,014
	Outsourced Data Processing		2,359			2,361		-0.1	%		2,338
	Professional Fees		722			674		7.1	%		669
	Courier Service		502			529		-5.1	%		500
	Amortization of
	Identifiable Intangibles		69			73		-5.5	%		72
	Other Operating		3,702			3,198		15.8	%		3,470
	Total Noninterest Expense	$24,545			$24,209			1.4	%	$24,603
	Noninterest Expense/
	Avg. Earning Assets (a)		1.59	%		1.83	%				1.63	%
	Noninterest Expense/Revenues (FTE)		42.9	%		46.4	%				47.1	%
								%
		12/31'20YTD			12/31'19YTD			Change
	Salaries & Benefits	$50,749			$51,054			-0.6	%
	Occupancy and Equipment		19,637			20,240		-3.0	%
	Outsourced Data Processing		9,426			9,471		-0.5	%
	Professional Fees		2,423			2,465		-1.7	%
	Courier Service		2,001			1,878		6.5	%
	Amortization of
	Identifiable Intangibles		287			538		-46.7	%
	Loss Contingency (1)		-			553		n/m
	Other Operating		14,043			12,787		9.8	%
	Total Noninterest Expense	$98,566			$98,986			-0.4	%
	Noninterest Expense/
	Avg. Earning Assets		1.71	%		1.91	%
	Noninterest Expense/Revenues (FTE)		46.2	%		47.4	%
8. Allowance for Credit Losses.
		(dollars in thousands)
								%
		Q4'2020			Q4'2019			Change		Q3'2020
	Average Total Loans	$1,286,480			$1,116,446			15.2	%	$1,312,758
	Beginning of Period Allowance for
	Credit Losses on Loans (ACLL)	$24,142			$19,828			21.8	%	$24,529
	Provision for Credit Losses		7			-		n/m			-
	Net ACLL Losses		(295	)		(344	)	-14.2	%		(387	)
	End of Period ACLL	$23,854			$19,484			22.4	%	$24,142
	Gross ACLL Recoveries /
	Gross ACLL Losses		69	%		71	%				56	%
	Net ACLL Losses /
	Avg. Total Loans (a)		0.09	%		0.12	%				0.12	%
								%
		12/31'20YTD			12/31'19YTD			Change
	Average Total Loans	$1,239,144			$1,161,779			6.7	%
	Prior Period Allowance for
	Credit Losses on Loans (ACLL)	$19,484			$21,351			-8.7	%
	Adoption of ASU 2016-13(2)		2,017			-		n/m
	Beginning of Period ACLL		21,501			21,351		0.7	%
	Provision for Credit Losses		4,307			-		n/m
	Net ACLL Losses		(1,954	)		(1,867	)	4.7	%
	End of Period ACLL	$23,854			$19,484			22.4	%
	Gross ACLL Recoveries /
	Gross ACLL Losses		53	%		59	%
	Net ACLL Losses /
	Avg. Total Loans		0.16	%		0.16	%
		(dollars in thousands)
								%
		12/31/20			12/31/19			Change		9/30/20
	Allowance for Credit Losses on Loans	$23,854			$19,484			22.4	%	$24,142
	Allowance for Credit Losses on
	HTM Securities (3)		9			-		n/m			16
	Total Allowance for Credit Losses	$23,863			$19,484			22.5	%	$24,158
	Allowance for Unfunded
	Credit Commitments		101			2,160		-95.3	%		53
9. Credit Quality.
		(dollars in thousands)
								%
		12/31/20			12/31/19			Change		9/30/20
	Nonperforming Loans:
	Nonperforming Nonaccrual	$526			$659			-20.2	%	$409
	Performing Nonaccrual		3,803			3,781		0.6	%		3,971
	Total Nonaccrual Loans		4,329			4,440		-2.5	%		4,380
	90+ Days Past Due Accruing Loans		450			440		2.3	%		360
	Total		4,779			4,880		-2.1	%		4,740
	Repossessed Loan Collateral		-			43		-100.0	%		43
	Total Nonperforming Assets	$4,779			$4,923			-2.9	%	$4,783
	Total Loans Outstanding	$1,256,243			$1,126,664			11.5	%	$1,310,009
	Total Assets	$6,747,931			$5,619,555			20.1	%	$6,563,215
	Loans:
	Allowance for Credit Losses on Loans	$23,854			$19,484			22.4	%	$24,142
	Allowance for Credit Losses on Loans /
	Loans		1.90	%		1.73	%				1.84	%
	Nonperforming Loans/Total Loans		0.38	%		0.43	%				0.36	%
10. Capital.
		(in thousands, except per-share amounts)
								%
		12/31/20			12/31/19			Change		9/30/20
	Shareholders' Equity	$844,809			$731,417			15.5	%	$825,576
	Total Assets		6,747,931			5,619,555		20.1	%		6,563,215
	Shareholders' Equity/
	Total Assets		12.52	%		13.02	%				12.58	%
	Shareholders' Equity/
	Total Loans		67.25	%		64.92	%				63.02	%
	Tangible Common Equity Ratio		10.90	%		11.07	%				10.91	%
	Common Shares Outstanding		26,807			27,062		-0.9	%		26,898
	Common Equity Per Share	$31.51			$27.03			16.6	%	$30.69
	Market Value Per Common Share		55.29			67.77		-18.4	%		54.35
	Share Repurchase Programs
		(shares in thousands)
								%
		Q4'2020			Q4'2019			Change		Q3'2020
	Total Shares Repurchased		91			-		n/m			35
	Average Repurchase Price	$ 52.22				$-		n/m		$52.42
	Net Shares Repurchased (Issued)		91			(48	)	n/m			35
								%
		12/31'20YTD			12/31'19YTD			Change
	Total Shares Repurchased		319			8		n/m
	Average Repurchase Price	$51.63			$61.98			n/m
	Net Shares Repurchased ( Issued)		255			(332	)	n/m
11. Period-End Balance Sheets.
		(unaudited, dollars in thousands)
								%
		12/31/20			12/31/19			Change		9/30/20
	Assets:
	Cash and Due from Banks	$621,275			$373,421			66.4	%	$398,964
	Investment Securities:
	Debt Securities Available For Sale		4,063,185			3,078,846		32.0	%		3,983,994
	Debt Securities Held To Maturity (4)		515,589			738,072		-30.1	%		577,795
	Loans		1,256,243			1,126,664		11.5	%		1,310,009
	Allowance For Credit Losses on Loans		(23,854	)		(19,484	)	22.4	%		(24,142	)
	Total Loans, net		1,232,389			1,107,180		11.3	%		1,285,867
	Other Real Estate Owned		-			43		-100.0	%		43
	Premises and Equipment, net		32,813			34,597		-5.2	%		33,437
	Identifiable Intangibles, net		1,104			1,391		-20.6	%		1,173
	Goodwill		121,673			121,673		0.0	%		121,673
	Other Assets		159,903			164,332		-2.7	%		160,269
	Total Assets	$6,747,931			$5,619,555			20.1	%	$6,563,215
	Liabilities and Shareholders' Equity:
	Deposits:
	Noninterest-Bearing	$2,725,177			$2,240,112			21.7	%	$2,684,028
	Interest-Bearing Transaction		1,102,601			931,888		18.3	%		1,040,712
	Savings		1,703,812			1,471,284		15.8	%		1,653,000
	Time		156,389			169,337		-7.6	%		161,450
	Total Deposits		5,687,979			4,812,621		18.2	%		5,539,190
	Short-Term Borrowed Funds		102,545			30,928		231.6	%		107,973
	Other Liabilities		112,598			44,589		152.5	%		90,476
	Total Liabilities		5,903,122			4,888,138		20.8	%		5,737,639
	Shareholders' Equity:
	Common Equity:
	Paid-In Capital		466,041			466,231		0.0	%		467,236
	Accumulated Other
	Comprehensive Income		114,412			26,051		n/m			103,623
	Retained Earnings		264,356			239,135		10.5	%		254,717
	Total Shareholders' Equity		844,809			731,417		15.5	%		825,576
	Total Liabilities and
	Shareholders' Equity	$6,747,931			$5,619,555			20.1	%	$6,563,215
12. Income Statements.
		(unaudited, in thousands except per-share amounts)
								%
		Q4'2020			Q4'2019			Change		Q3'2020
	Interest & Fee Income:
	Loans	$14,999			$14,103			6.4	%	$15,291
	Investment Securities:
	Equity Securities		110			103		6.9	%		103
	Debt Securities Available For Sale (5)		24,947			20,067		24.3	%		22,652
	Debt Securities Held To Maturity		2,793			4,209		-33.6	%		3,235
	Interest-Bearing Cash		112			1,396		-92.0	%		84
	Total Interest & Fee Income		42,961			39,878		7.7	%		41,365
	Interest Expense:
	Transaction Deposits		90			89		1.3	%		85
	Savings Deposits		246			215		14.5	%		238
	Time Deposits		126			140		-10.1	%		127
	Short-Term Borrowed Funds		19			7		170.9	%		16
	Total Interest Expense		481			451		6.7	%		466
	Net Interest Income		42,480			39,427		7.7	%		40,899
	Provision for Credit Losses		-			-		n/m			-
	Noninterest Income:
	Service Charges		3,452			4,374		-21.1	%		3,298
	Merchant Processing Services		2,713			2,424		11.9	%		2,860
	Debit Card Fees		1,643			1,568		4.7	%		1,611
	Trust Fees		765			764		0.0	%		756
	ATM Processing Fees		570			696		-18.1	%		606
	Other Service Fees		457			513		-10.9	%		454
	Financial Services Commissions		66			122		-45.9	%		58
	Gains on Sales of Real Property		3,536			-		n/m			-
	Securities Gains		-			167		n/m			-
	Other Operating		757			1,104		-31.4	%		833
	Total Noninterest Income		13,959			11,732		19.0	%		10,476
	Noninterest Expense:
	Salaries and  Benefits		12,291			12,297		0.0	%		12,540
	Occupancy and Equipment		4,900			5,077		-3.5	%		5,014
	Outsourced Data Processing		2,359			2,361		-0.1	%		2,338
	Professional Fees		722			674		7.1	%		669
	Courier Service		502			529		-5.1	%		500
	Amortization of Identifiable Intangibles		69			73		-5.5	%		72
	Other Operating		3,702			3,198		15.8	%		3,470
	Total Noninterest Expense		24,545			24,209		1.4	%		24,603
	Income Before Income Taxes		31,894			26,950		18.3	%		26,772
	Income Tax Provision		8,056			6,222		29.5	%		6,721
	Net Income	$23,838			$20,728			15.0	%	$20,051
	Average Common Shares Outstanding		26,838			27,050		-0.8	%		26,930
	Diluted Common Shares Outstanding		26,849			27,094		-0.9	%		26,946
	Per Common Share Data:
	Basic Earnings	$0.89			$0.77			15.6	%	$0.74
	Diluted Earnings		0.89			0.77		15.6	%		0.74
	Dividends Paid		0.41			0.41		0.0	%		0.41
								%
		12/31'20YTD			12/31'19YTD			Change
	Interest & Fee Income:
	Loans	$59,377			$58,153			2.1	%
	Investment Securities:
	Equity Securities		419			392		6.9	%
	Debt Securities Available For Sale (5)		91,343			74,147		23.2	%
	Debt Securities Held To Maturity		13,552			18,997		-28.7	%
	Interest-Bearing Cash		1,165			6,993		-83.3	%
	Total Interest & Fee Income		165,856			158,682		4.5	%
	Interest Expense:
	Transaction Deposits		333			422		-21.1	%
	Savings Deposits		925			852		8.5	%
	Time Deposits		512			580		-11.8	%
	Short-Term Borrowed Funds		53			34		55.9	%
	Other Borrowed Funds		1			-		n/m
	Total Interest Expense		1,824			1,888		-3.4	%
	Net Interest Income		164,032			156,794		4.6	%
	Provision for Credit Losses		4,300			-		n/m
	Noninterest Income:
	Service Charges		14,149			17,882		-20.9	%
	Merchant Processing Services		10,208			10,132		0.8	%
	Debit Card Fees		6,181			6,357		-2.8	%
	Trust Fees		3,012			2,963		1.6	%
	ATM Processing Fees		2,273			2,776		-18.1	%
	Other Service Fees		1,837			2,255		-18.5	%
	Financial Services Commissions		372			392		-5.1	%
	Gains on Sales of Real Property		3,536			-		n/m
	Life Insurance Gains		-			433		n/m
	Securities Gains		71			217		n/m
	Other Operating (6)		3,998			4,001		-0.1	%
	Total Noninterest Income		45,637			47,408		-3.7	%
	Noninterest Expense:
	Salaries and  Benefits		50,749			51,054		-0.6	%
	Occupancy and Equipment		19,637			20,240		-3.0	%
	Outsourced Data Processing		9,426			9,471		-0.5	%
	Professional Fees		2,423			2,465		-1.7	%
	Courier Service		2,001			1,878		6.5	%
	Amortization of Identifiable Intangibles		287			538		-46.7	%
	Loss Contingency (1)		-			553		n/m
	Other Operating		14,043			12,787		9.8	%
	Total Noninterest Expense		98,566			98,986		-0.4	%
	Income Before Income Taxes		106,803			105,216		1.5	%
	Income Tax Provision		26,390			24,827		6.3	%
	Net Income	$80,413			$80,389			0.0	%
	Average Common Shares Outstanding		26,942			26,956		0.0	%
	Diluted Common Shares Outstanding		26,960			27,006		-0.2	%
	Per Common Share Data:
	Basic Earnings	$2.98			$2.98			0.0	%
	Diluted Earnings		2.98			2.98		0.0	%
	Dividends Paid		1.64			1.63		0.6	%
	Footnotes and Abbreviations:
	(1) In 2019, the Company recorded a $301 thousand increase in estimated customer refunds of revenue recognized prior to 2018 and a $252 thousand loss settlement to dismiss a lawsuit.
	(2) 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 credit losses for loans and held-to-maturity debt securities, other liabilities, deferred tax assets, and shareholders' equity.
	(3) In the fourth quarter 2020, the Company recorded a $7 thousand reversal of provision for credit losses on Debt Securities Held To Maturity and the balance of the allowance for credit losses on Debt Securities Held To Maturity was reduced from $16 thousand at September 30, 2020 to $9 thousand at December 31, 2020.
	(4) The Company adopted ASU 2016-13, effective January 1, 2020.  Debt Securities Held To Maturity of $515,589 thousand at December 31, 2020 and $577,795 thousand at September 30, 2020 are net of related reserve for expected credit losses of $9 thousand and $16 thousand, respectively.
	(5) Interest income on Debt Securities Available For Sale included make-whole interest income on called corporate bonds of $1.9 million in the fourth quarter 2020.
	(6) The Company received $603 thousand in excess of amounts charged-off in prior periods on a purchased loan during the first quarter 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.