Westamerica Bancorporation Reports First Quarter 2021 Financial Results

SAN RAFAEL, Calif., April 15, 2021 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the first quarter 2021 of $20.1 million and diluted earnings per common share ("EPS") of $0.75. First quarter 2021 results include “make-whole” interest income on corporate bonds redeemed prior to maturity, which increased EPS $0.02. These results compare to net income of $23.8 million and EPS of $0.89 for the fourth quarter 2020, which included a gain on sale of a closed branch building, “make-whole” interest income on corporate bonds redeemed before maturity, and a customary adjustment to the tax provision for filed 2019 tax returns, which increased EPS $0.15.

“Westamerica continues to support our customers during the pandemic. We have kept our branches open to continue providing full-service, and during the first quarter 2021, we originated $91 million in loans under the second round of the Paycheck Protection Program. Operating expenses have remained stable with first quarter 2020 pre-pandemic levels, and in the first quarter 2021 operating expenses represented only 47 percent of revenues on a fully-taxable equivalent basis. The predominance of checking and savings accounts within Westamerica’s deposit base resulted in a very low 0.03 percent annualized cost of funding our loan and bond portfolios during the first quarter 2021. Credit quality remained stable with nonperforming loans of $4.1 million at March 31, 2021,” said Chairman, President and CEO David Payne. “First quarter 2021 results generated an annualized 11.1 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 $42.6 million for the first quarter 2021, including “make-whole” interest income on corporate bonds redeemed prior to maturity of $700 thousand. First quarter 2021 net interest income (FTE) compares to $43.3 million for the fourth quarter 2020, which included “make-whole” interest income on corporate bonds redeemed prior to maturity of $1.9 million. Average total deposits grew $92 million from the fourth quarter 2020 to the first quarter 2021. Checking and savings deposits represented ninety-seven percent of the Company’s average deposit base during the first quarter 2021 resulting in a 0.03 percent annualized cost of funding interest-earning assets.

At March 31, 2021, nonperforming loans totaled $4.1 million and the allowance for credit losses on loans was $23.5 million. The Company continues to work with loan customers requesting deferral of loan payments due to economic weakness caused by the pandemic. At March 31, 2021, loans with deferred payments included consumer loans totaling $1.8 million and one hospitality industry commercial real estate loan totaling $2.3 million (the commercial real estate loan borrower re-commenced payments on April 1, 2021).

Noninterest income for the first quarter 2021 totaled $10.2 million, compared to noninterest income for the fourth quarter 2020 of $14.0 million, which included a $3.5 million gain on sale of a closed branch building.

Noninterest expense for the first quarter 2021 was $24.9 million compared to $24.5 million for the fourth quarter 2020, and $24.7 million for the first quarter 2020.

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, 2020 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 April 15, 2021
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
March 31, 2021
1. Net Income Summary.
		(in thousands except per-share amounts)
								%
		Q1'2021			Q1'2020			Change		Q4'2020
	Net Interest and Fee Income (FTE)	$	42,583		$	40,547		5.0	%	$	43,292
	Provision for Credit Losses		-			4,300		n/m			-
	Noninterest Income		10,189			11,648		-12.5	%		13,959
	Noninterest Expense		24,906			24,664		1.0	%		24,545
	Income Before Taxes (FTE)		27,866			23,231		20.0	%		32,706
	Income Tax Provision (FTE)		7,719			6,269		23.1	%		8,868
	Net Income	$	20,147		$	16,962		18.8	%	$	23,838
	Average Common Shares Outstanding		26,821			27,068		-0.9	%		26,838
	Diluted Average Common Shares		26,842			27,139		-1.1	%		26,849
	Operating Ratios:
	Basic Earnings Per Common Share	$	0.75		$	0.63		19.0	%	$	0.89
	Diluted Earnings Per Common Share		0.75			0.63		19.0	%		0.89
	Return On Assets (a)		1.23	%		1.21	%				1.44	%
	Return On Common Equity (a)		11.1	%		9.7	%				13.2	%
	Net Interest Margin (FTE) (a)		2.74	%		3.10	%				2.81	%
	Efficiency Ratio (FTE)		47.2	%		47.3	%				42.9	%
	Dividends Paid Per Common Share	$	0.41		$	0.41		0.0	%	$	0.41
	Common Dividend Payout Ratio		55	%		66	%				46	%
2. Net Interest Income.
		(dollars in thousands)
								%
		Q1'2021			Q1'2020			Change		Q4'2020
	Interest and Fee Income (FTE)	$	43,058		$	40,989		5.0	%	$	43,773
	Interest Expense		475			442		7.5	%		481
	Net Interest and Fee Income (FTE)	$	42,583		$	40,547		5.0	%	$	43,292
	Average Earning Assets	$	6,244,622		$	5,242,142		19.1	%	$	6,156,749
	Average Interest-
	Bearing Liabilities		3,130,227			2,648,581		18.2	%		3,034,240
	Yield on Earning Assets (FTE) (a)		2.77	%		3.13	%				2.84	%
	Cost of Funds (a)		0.03	%		0.03	%				0.03	%
	Net Interest Margin (FTE) (a)		2.74	%		3.10	%				2.81	%
	Interest Expense/
	Interest-Bearing Liabilities (a)		0.06	%		0.07	%				0.06	%
	Net Interest Spread (FTE) (a)		2.71	%		3.06	%				2.78	%
3. Loans & Other Earning Assets.
		(average volume, dollars in thousands)
								%
		Q1'2021			Q1'2020			Change		Q4'2020
	Total Assets	$	6,650,164		$	5,655,460		17.6	%	$	6,562,753
	Total Earning Assets		6,244,622			5,242,142		19.1	%		6,156,749
	Total Loans		1,251,540			1,123,934		11.4	%		1,286,480
	Total Commercial Loans		395,473			223,383		77.0	%		426,564
	Paycheck Protection Program (PPP) Loans		188,971			-		n/m			227,828
	Commercial Loans		206,502			223,383		-7.6	%		198,736
	Commercial RE Loans		559,191			579,743		-3.5	%		561,394
	Consumer Loans		296,876			320,808		-7.5	%		298,522
	Total Investment Securities		4,440,621			3,845,885		15.5	%		4,430,592
	Debt Securities Available For Sale		3,947,549			3,135,743		25.9	%		3,884,451
	Debt Securities Held To Maturity		493,072			710,142		-30.6	%		546,141
	Total Interest-Bearing Cash		552,461			272,323		102.9	%		439,677
	Loans/Deposits		21.8	%		23.3	%				22.7	%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
		(average volume, dollars in thousands)
								%
		Q1'2021			Q1'2020			Change		Q4'2020
	Total Deposits	$	5,748,070		$	4,828,988		19.0	%	$	5,655,768
	Noninterest Demand		2,713,632			2,222,737		22.1	%		2,736,348
	Interest-Bearing Transaction		1,130,760			941,720		20.1	%		1,071,576
	Savings		1,746,815			1,496,362		16.7	%		1,688,031
	Time greater than $100K		71,241			73,849		-3.5	%		71,306
	Time less than $100K		85,622			94,320		-9.2	%		88,507
	Total Short-Term Borrowings		95,575			42,330		125.8	%		114,820
	Other Borrowed Funds		214			-		n/m			-
	Shareholders' Equity		735,496			705,330		4.3	%		720,473
	Demand Deposits/
	Total Deposits		47.2	%		46.0	%				48.4	%
	Transaction & Savings
	Deposits / Total Deposits		97.3	%		96.5	%				97.2	%
5. Interest Yields Earned & Rates Paid.
		(dollars in thousands)
		Q1'2021
		Average			Income/			Yield (a) /
		Volume			Expense			Rate (a)
	Interest & Fee Income Earned
	Total Earning Assets (FTE)	$	6,244,622		$	43,058		2.77	%
	Total Loans (FTE)		1,251,540			14,684		4.76	%
	Total Commercial Loans (FTE)		395,473			4,005		4.11	%
	PPP Loans		188,971			1,853		3.98	%
	Commercial Loans (FTE)		206,502			2,152		4.23	%
	Commercial RE Loans		559,191			7,341		5.32	%
	Consumer Loans		296,876			3,338		4.56	%
	Total Investments (FTE)		4,440,621			28,236		2.54	%
	Total Interest-Bearing Cash		552,461			138		0.10	%
	Interest Expense Paid
	Total Earning Assets		6,244,622			475		0.03	%
	Total Interest-Bearing Liabilities		3,130,227			475		0.06	%
	Total Interest-Bearing Deposits		3,034,438			459		0.06	%
	Interest-Bearing Transaction		1,130,760			89		0.03	%
	Savings		1,746,815			250		0.06	%
	Time less than $100K		85,622			42		0.20	%
	Time greater than $100K		71,241			78		0.44	%
	Total Short-Term Borrowings		95,575			16		0.07	%
	Other Borrowed Funds		214			-		0.35	%
	Net Interest Income and
	Margin (FTE)				$	42,583		2.74	%
		Q1'2020
		Average			Income/			Yield (a) /
		Volume			Expense			Rate (a)
	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	%
6. Noninterest Income.
		(dollars in thousands except per-share amounts)
								%
		Q1'2021			Q1'2020			Change		Q4'2020
	Service Charges on Deposits	$	3,304		$	4,248		-22.2	%	$	3,452
	Merchant Processing Services		2,560			2,358		8.6	%		2,713
	Debit Card Fees		1,601			1,468		9.0	%		1,643
	Trust Fees		801			777		3.1	%		765
	ATM Processing Fees		601			579		3.8	%		570
	Other Service Fees		469			506		-7.2	%		457
	Financial Services Commissions		70			125		-44.0	%		66
	Gains on Sales of Real Property		-			-		n/m			3,536
	Other Noninterest Income (5)		783			1,587		-50.7	%		757
	Total Noninterest Income	$	10,189		$	11,648		-12.5	%	$	13,959
	Total Revenue (FTE)	$	52,772		$	52,195		1.1	%	$	57,251
	Noninterest Income/Revenue (FTE)		19.3	%		22.3	%				24.4	%
	Service Charges/Avg. Deposits (a)		0.23	%		0.35	%				0.24	%
	Total Revenues (FTE) Per Avg.
	Common Share (a)	$	7.98		$	7.76		2.9	%	$	8.49
7. Noninterest Expense.
		(dollars in thousands)
								%
		Q1'2021			Q1'2020			Change		Q4'2020
	Salaries & Benefits	$	12,665		$	13,018		-2.7	%	$	12,291
	Occupancy and Equipment		4,880			4,932		-1.1	%		4,900
	Outsourced Data Processing		2,390			2,405		-0.6	%		2,359
	Professional Fees		942			389		142.2	%		722
	Courier Service		504			491		2.6	%		502
	Amortization of
	Identifiable Intangibles		69			73		-5.5	%		69
	Other Noninterest Expense		3,456			3,356		3.0	%		3,702
	Total Noninterest Expense	$	24,906		$	24,664		1.0	%	$	24,545
	Noninterest Expense/
	Avg. Earning Assets (a)		1.62	%		1.89	%				1.59	%
	Noninterest Expense/Revenues (FTE)		47.2	%		47.3	%				42.9	%
8. Allowance for Credit Losses.
		(dollars in thousands)
								%
		Q1'2021			Q1'2020			Change		Q4'2020
	Average Total Loans	$	1,251,540		$	1,123,934		11.4	%	$	1,286,480
	Beginning of Period Allowance for
	Credit Losses on Loans (ACLL)	$	23,854		$	19,484		22.4	%	$	24,142
	Adoption of ASU 2016-13(1)		-			2,017		n/m			-
	Beginning of Period ACLL		23,854			21,501		10.9	%		24,142
	Provision for Credit Losses		-			4,300		n/m			7
	Net ACLL Losses		(371	)		(997	)	-62.8	%		(295	)
	End of Period ACLL	$	23,483		$	24,804		-5.3	%	$	23,854
	Gross ACLL Recoveries /
	Gross ACLL Losses		60	%		37	%				69	%
	Net ACLL Losses /
	Avg. Total Loans (a)		0.12	%		0.36	%				0.09	%
		(dollars in thousands)
								%
		3/31/21			3/31/20			Change		12/31/20
	Allowance for Credit Losses on Loans	$	23,483		$	24,804		-5.3	%	$	23,854
	Allowance for Credit Losses on
	HTM Securities (2)		9			16		-44.6	%		9
	Total Allowance for Credit Losses	$	23,492		$	24,820		-5.4	%	$	23,863
	Allowance for Unfunded
	Credit Commitments		101			53		90.0	%		101
9. Credit Quality.
		(dollars in thousands)
								%
		3/31/21			3/31/20			Change		12/31/20
	Nonperforming Loans:
	Nonperforming Nonaccrual	$	402		$	419		-4.1	%	$	526
	Performing Nonaccrual		3,569			3,933		-9.3	%		3,803
	Total Nonaccrual Loans		3,971			4,352		-8.8	%		4,329
	90+ Days Past Due Accruing Loans		132			178		-25.8	%		450
	Total		4,103			4,530		-9.4	%		4,779
	Repossessed Loan Collateral		-			43		n/m			-
	Total Nonperforming Assets	$	4,103		$	4,573		-10.3	%	$	4,779
	Total Loans Outstanding	$	1,293,756		$	1,121,243		15.4	%	$	1,256,243
	Total Assets		6,912,481			5,628,126		22.8	%		6,747,931
	Loans:
	Allowance for Credit Losses on Loans	$	23,483		$	24,804		-5.3	%	$	23,854
	Allowance for Credit Losses on Loans /
	Loans		1.82	%		2.21	%				1.90	%
	Nonperforming Loans/Total Loans		0.32	%		0.40	%				0.38	%
10. Capital.
		(in thousands, except per-share amounts)
								%
		3/31/21			3/31/20			Change		12/31/20
	Shareholders' Equity	$	812,132		$	705,546		15.1	%	$	844,809
	Total Assets		6,912,481			5,628,126		22.8	%		6,747,931
	Shareholders' Equity/
	Total Assets		11.75	%		12.54	%				12.52	%
	Shareholders' Equity/
	Total Loans		62.77	%		62.93	%				67.25	%
	Tangible Common Equity Ratio		10.15	%		10.58	%				10.90	%
	Common Shares Outstanding		26,864			26,932		-0.3	%		26,807
	Common Equity Per Share	$	30.23		$	26.20		15.4	%	$	31.51
	Market Value Per Common Share		62.78			58.78		6.8	%		55.29
		(shares in thousands)
								%
		Q1'2021			Q1'2020			Change		Q4'2020
	Total Shares Repurchased		4			180		n/m			91
	Average Repurchase Price	$	61.09		$	51.52		n/m		$	52.22
	Net Shares (Issued) Repurchased		(57	)		130		n/m			91
11. Period-End Balance Sheets.
		(unaudited, dollars in thousands)
								%
		3/31/21			3/31/20			Change		12/31/20
	Assets:
	Cash and Due from Banks	$	866,457		$	304,628		184.4	%	$	621,275
	Investment Securities:
	Debt Securities Available For Sale		3,990,570			3,210,689		24.3	%		4,063,185
	Debt Securities Held To Maturity (3)		469,259			681,821		-31.2	%		515,589
	Loans		1,293,756			1,121,243		15.4	%		1,256,243
	Allowance For Credit Losses on Loans		(23,483	)		(24,804	)	-5.3	%		(23,854	)
	Total Loans, net		1,270,273			1,096,439		15.9	%		1,232,389
	Other Real Estate Owned		-			43		n/m			-
	Premises and Equipment, net		32,216			35,403		-9.0	%		32,813
	Identifiable Intangibles, net		1,035			1,318		-21.5	%		1,105
	Goodwill		121,673			121,673		0.0	%		121,673
	Other Assets		160,998			176,112		-8.6	%		159,903
	Total Assets	$	6,912,481		$	5,628,126		22.8	%	$	6,747,931
	Liabilities and Shareholders' Equity:
	Deposits:
	Noninterest-Bearing	$	2,798,542		$	2,183,283		28.2	%	$	2,725,177
	Interest-Bearing Transaction		1,179,484			936,516		25.9	%		1,102,601
	Savings		1,791,636			1,514,431		18.3	%		1,703,812
	Time		154,171			165,196		-6.7	%		156,389
	Total Deposits		5,923,833			4,799,426		23.4	%		5,687,979
	Short-Term Borrowed Funds		95,479			52,664		81.3	%		102,545
	Other Borrowed Funds		1,681			-		n/m			-
	Other Liabilities		79,356			70,490		12.6	%		112,598
	Total Liabilities		6,100,349			4,922,580		23.9	%		5,903,122
	Shareholders' Equity:
	Common Equity:
	Paid-In Capital		469,885			466,472		0.7	%		466,041
	Accumulated Other
	Comprehensive Income		68,901			171		n/m			114,412
	Retained Earnings		273,346			238,903		14.4	%		264,356
	Total Shareholders' Equity		812,132			705,546		15.1	%		844,809
	Total Liabilities and
	Shareholders' Equity	$	6,912,481		$	5,628,126		22.8	%	$	6,747,931
12. Income Statements.
		(unaudited, in thousands except per-share amounts)
								%
		Q1'2021			Q1'2020			Change		Q4'2020
	Interest & Fee Income:
	Loans	$	14,581		$	13,809		5.6	%	$	14,999
	Investment Securities:
	Equity Securities		110			103		6.9	%		110
	Debt Securities Available For Sale (4)		24,889			21,315		16.8	%		24,947
	Debt Securities Held To Maturity		2,598			3,908		-33.5	%		2,793
	Interest-Bearing Cash		138			856		-83.9	%		112
	Total Interest & Fee Income		42,316			39,991		5.8	%		42,961
	Interest Expense:
	Transaction Deposits		89			84		6.5	%		90
	Savings Deposits		250			217		15.0	%		246
	Time Deposits		120			133		-9.9	%		126
	Short-Term Borrowed Funds		16			8		99.9	%		19
	Total Interest Expense		475			442		7.4	%		481
	Net Interest Income		41,841			39,549		5.8	%		42,480
	Provision for Credit Losses		-			4,300		n/m			-
	Noninterest Income:
	Service Charges		3,304			4,248		-22.2	%		3,452
	Merchant Processing Services		2,560			2,358		8.6	%		2,713
	Debit Card Fees		1,601			1,468		9.0	%		1,643
	Trust Fees		801			777		3.1	%		765
	ATM Processing Fees		601			579		3.8	%		570
	Other Service Fees		469			506		-7.2	%		457
	Financial Services Commissions		70			125		-44.0	%		66
	Gains on Sales of Real Property		-			-		n/m			3,536
	Other Noninterest Income (5)		783			1,587		-50.7	%		757
	Total Noninterest Income		10,189			11,648		-12.5	%		13,959
	Noninterest Expense:
	Salaries and Benefits		12,665			13,018		-2.7	%		12,291
	Occupancy and Equipment		4,880			4,932		-1.1	%		4,900
	Outsourced Data Processing		2,390			2,405		-0.6	%		2,359
	Professional Fees		942			389		142.2	%		722
	Courier Service		504			491		2.6	%		502
	Amortization of Identifiable Intangibles		69			73		-5.5	%		69
	Other Noninterest Expense		3,456			3,356		3.0	%		3,702
	Total Noninterest Expense		24,906			24,664		1.0	%		24,545
	Income Before Income Taxes		27,124			22,233		22.0	%		31,894
	Income Tax Provision		6,977			5,271		32.4	%		8,056
	Net Income	$	20,147		$	16,962		18.8	%	$	23,838
	Average Common Shares Outstanding		26,821			27,068		-0.9	%		26,838
	Diluted Common Shares Outstanding		26,842			27,139		-1.1	%		26,849
	Per Common Share Data:
	Basic Earnings	$	0.75		$	0.63		19.0	%	$	0.89
	Diluted Earnings		0.75			0.63		19.0	%		0.89
	Dividends Paid		0.41			0.41		0.0	%		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 credit losses for loans and held-to-maturity debt securities, other liabilities, deferred tax assets, and shareholders' equity.
	(2) 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.
	(3) The Company adopted ASU 2016-13, effective January 1, 2020. Debt Securities Held To Maturity of $469,259 thousand at March 31, 2021, $515,589 thousand at December 31, 2020 and $681,821 thousand at March 31, 2020 are net of related reserve for expected credit losses of $9 thousand, $9 thousand and $16 thousand, respectively.
	(4) Interest income on Debt Securities Available For Sale included make-whole interest income on called corporate bonds of $700 thousand in the first quarter 2021 and $1.9 million in the fourth quarter 2020.
	(5) 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.