Westamerica Bancorporation Reports Second Quarter 2018 Financial Results

SAN RAFAEL, Calif., July 19, 2018 (GLOBE NEWSWIRE) — Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, generated net income for the second quarter 2018 of $18.0 million and diluted earnings per common share (“EPS”) of $0.67, compared to first quarter 2018 net income of $17.5 million and EPS of $0.66 and second quarter 2017 net income of $15.8 million and EPS of $0.60.

“Second quarter 2018 net income benefited from higher interest income as rising market interest rates are benefiting our loan and investment securities yields. Our annualized funding costs were unchanged, however, at 0.04 percent of interest-earning assets due to the predominance of low-cost checking and savings accounts in our deposit portfolio. Net interest income on a fully-taxable equivalent (“FTE”) basis was $36.6 million for the second quarter 2018, compared to $35.5 million for the first quarter 2018 and $35.8 million for the second quarter 2017. Noninterest expenses for the second quarter 2018 were $24.0 million, compared to $24.2 million for first quarter 2018 and $24.4 million second quarter 2017. The improvement in revenue and decline in operating expenses resulted in pre-tax income equal to 50.4 percent of total revenues for the second quarter 2018,” said Chairman, President and CEO David Payne. “Asset quality remains strong with nonperforming assets totaling only $6 million at June 30, 2018, and net loan loss recoveries of $31 thousand for the first six months of 2018. Second quarter 2018 results generated an annualized 11.6 percent return on average common equity for our shareholders,” concluded Payne.

Net interest income (FTE) was $36.6 million for the second quarter 2018, compared to $35.5 million for the first quarter 2018 and $35.8 million for the second quarter 2017. The net interest margin (FTE) was 3.08 percent for the second quarter 2018, compared to 3.02 percent for the first quarter 2018 and 3.12 percent for the second quarter 2017. Checking and savings deposits, which are less sensitive to rising interest rates than time deposits, represented ninety-five percent of the Company’s average deposit base during the second quarter 2018.

The Company recognized no provision for loan losses for the second quarter 2018 given stable nonperforming loan volumes and other credit quality attributes. At June 30, 2018, the allowance for loan losses totaled $23.0 million.

Noninterest income for the second quarter 2018 totaled $11.8 million, compared to $12.0 million for the first quarter 2018 and $12.1 million for the second quarter 2017.

Noninterest expense for the second quarter 2018 totaled $24.0 million, compared to $24.2 million for the first quarter 2018 and $24.4 million for the second quarter 2017.

The tax rate (FTE) applied to pre-tax income was 26.1 percent for the second quarter 2018, compared to 24.6 percent for the first quarter 2018 and 37.8 percent for the second quarter 2017. The lower tax rates for 2018 compared to 2017 reflect a reduction in the federal corporate tax rate due to the Tax Cuts and Jobs Act of 2017. The book tax provisions for the second quarter 2018 and the first quarter 2018 include tax benefits of $128 thousand and $451 thousand, respectively, for tax deductions from the exercise of employee stock options which exceed related compensation expense recognized in the financial statements.

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

Westamerica Bancorporation Web Address: www.westamerica.com

For additional information contact:
Westamerica Bancorporation
1108 Fifth Avenue, San Rafael, CA 94901
Robert A. Thorson – SVP & Chief Financial Officer
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 annual report for the year ended December 31, 2017 filed on Form 10-K and quarterly report for the quarter ended March 31, 2018 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company’s business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2011, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.

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

 

    Public Information July 19, 2018    
WESTAMERICA BANCORPORATION        
FINANCIAL HIGHLIGHTS          
June 30, 2018          
             
1. Net Income Summary.          
    (in thousands except per-share amounts)  
        %    
    Q2’18 Q2’17 Change Q1’18  
             
  Net Interest and Fee Income (FTE) $ 36,585   $ 35,764   2.3 % $ 35,467    
  Reversal of Provision for Loan Losses           (1,900 ) n/m          
  Noninterest Income   11,769     12,123   -2.9 %   11,955    
  Noninterest Expense   23,977     24,396   -1.7 %   24,214    
  Income Before Taxes (FTE)   24,377     25,391   -4.0 %   23,208    
  Income Tax Provision (FTE)   6,367     9,592   -33.6 %   5,702    
  Net Income $ 18,010   $ 15,799   14.0 % $ 17,506    
             
  Average Common Shares Outstanding   26,630     26,299   1.3 %   26,532    
  Diluted Average Common Shares   26,728     26,402   1.2 %   26,665    
             
  Operating Ratios:          
  Basic Earnings Per Common Share $ 0.68   $ 0.60   13.3 % $ 0.66    
  Diluted Earnings Per Common Share   0.67     0.60   11.7 %   0.66    
  Return On Assets (a)   1.29 %   1.18 %     1.28 %  
  Return On Common Equity (a)   11.6 %   10.7 %     11.6 %  
  Net Interest Margin (FTE) (a)   3.08 %   3.12 %     3.02 %  
  Efficiency Ratio (FTE)   49.6 %   50.9 %     51.1 %  
             
  Dividends Paid Per Common Share $ 0.40   $ 0.39   2.6 % $ 0.40    
  Common Dividend Payout Ratio      60 %   65 %     61 %  
             
    6/30’18YTD 6/30’17YTD Change    
             
  Net Interest and Fee Income (FTE) $ 72,052   $ 71,794   0.4 %    
  Reversal of Provision for Loan Losses           (1,900 ) n/m      
  Noninterest Income   23,724     23,780   -0.2 %    
  Noninterest Expense   48,191     49,011   -1.7 %    
  Income Before Taxes (FTE)   47,585     48,463   -1.8 %    
  Income Tax Provision (FTE)   12,069     17,615   -31.5 %    
  Net Income $ 35,516   $ 30,848   15.1 %    
             
  Average Common Shares Outstanding   26,581     26,235   1.3 %    
  Diluted Average Common Shares   26,696     26,366   1.3 %    
             
  Operating Ratios:          
  Basic Earnings Per Common Share $ 1.34   $ 1.18   13.6 %    
  Diluted Earnings Per Common Share   1.33     1.17   13.7 %    
  Return On Assets (a)   1.28 %   1.15 %      
  Return On Common Equity (a)   11.6 %   10.6 %      
  Net Interest Margin (FTE) (a)   3.05 %   3.13 %      
  Efficiency Ratio (FTE)   50.3 %   51.3 %      
             
  Dividends Paid Per Common Share $ 0.80   $ 0.78   2.6 %    
  Common Dividend Payout Ratio      60 %   67 %      
             
2. Net Interest Income.          
    (dollars in thousands)  
        %    
    Q2’18 Q2’17 Change Q1’18  
             
  Interest and Fee Income (FTE) $ 37,044   $ 36,240   2.2 % $ 35,926    
  Interest Expense   459     476   -3.6 %   459    
  Net Interest and Fee Income (FTE) $ 36,585   $ 35,764   2.3 % $ 35,467    
             
  Average Earning Assets $ 4,752,887   $ 4,598,296   3.4 % $ 4,723,213    
  Average Interest-          
  Bearing Liabilities   2,729,671     2,692,447   1.4 %   2,734,227    
             
  Yield on Earning Assets (FTE) (a)   3.12 %   3.16 %     3.06 %  
  Cost of Funds (a)   0.04 %   0.04 %     0.04 %  
  Net Interest Margin (FTE) (a)   3.08 %   3.12 %     3.02 %  
  Interest Expense/          
  Interest-Bearing Liabilities (a)   0.07 %   0.07 %     0.07 %  
  Net Interest Spread (FTE) (a)   3.05 %   3.09 %     2.99 %  
             
        %    
    6/30’18YTD 6/30’17YTD Change    
             
  Interest and Fee Income (FTE) $ 72,970   $ 72,750   0.3 %    
  Interest Expense   918     956   -4.0 %    
  Net Interest and Fee Income (FTE) $ 72,052   $ 71,794   0.4 %    
             
  Average Earning Assets $ 4,738,132   $ 4,609,089   2.8 %    
  Average Interest-          
  Bearing Liabilities   2,731,936     2,698,426   1.2 %    
             
  Yield on Earning Assets (FTE) (a)   3.09 %   3.17 %      
  Cost of Funds (a)   0.04 %   0.04 %      
  Net Interest Margin (FTE) (a)   3.05 %   3.13 %      
  Interest Expense/          
  Interest-Bearing Liabilities (a)   0.07 %   0.07 %      
  Net Interest Spread (FTE) (a)   3.02 %   3.10 %      
             
3. Loans & Other Earning Assets.          
    (average volume, dollars in thousands)  
        %    
    Q2’18 Q2’17 Change Q1’18  
             
  Total Assets $ 5,587,871   $ 5,385,085   3.8 % $ 5,564,705    
  Total Earning Assets   4,752,887     4,598,296   3.4 %   4,723,213    
  Total Loans   1,209,049     1,333,135   -9.3 %   1,243,750    
  Commercial Loans   295,971     349,979   -15.4 %   316,345    
  Commercial RE Loans    550,427     566,570   -2.8 %   556,034    
  Consumer Loans   362,651     416,586   -12.9 %   371,371    
  Total Investment Securities   3,543,838     3,265,161   8.5 %   3,479,463    
  Equity Securities   1,763     3,024   n/m     1,993    
  Debt Securities Available For Sale   2,444,582     1,979,973   23.5 %   2,341,414    
  Debt Securities Held To Maturity   1,097,493     1,282,164   -14.4 %   1,136,056    
             
  Loans/Deposits   24.9 %   28.6 %     25.8 %  
        %    
    6/30’18YTD 6/30’17YTD Change    
             
  Total Assets $ 5,576,352   $ 5,390,404   3.4 %    
  Total Earning Assets   4,738,132     4,609,089   2.8 %    
  Total Loans   1,226,304     1,344,132   -8.8 %    
  Commercial Loans   306,102     352,424   -13.1 %    
  Commercial RE Loans    553,215     562,550   -1.7 %    
  Consumer Loans   366,987     429,158   -14.5 %    
  Total Investment Securities   3,511,828     3,264,957   7.6 %    
  Equity Securities   1,877     3,068   -38.8 %    
  Debt Securities Available For Sale   2,393,283     1,959,060   22.2 %    
  Debt Securities Held To Maturity   1,116,668     1,302,829   -14.3 %    
             
  Loans/Deposits   25.3 %   28.7 %      
             
4. Deposits, Other Interest-Bearing Liabilities & Equity.      
    (average volume, dollars in thousands)  
        %    
    Q2’18 Q2’17 Change Q1’18  
             
  Total Deposits $ 4,846,986   $ 4,669,424   3.8 % $ 4,828,352    
  Noninterest Demand    2,177,708     2,048,155   6.3 %   2,156,626    
  Interest Bearing Transaction   924,542     880,470   5.0 %   925,533    
  Savings   1,523,024     1,491,283   2.1 %   1,518,028    
  Time greater than $100K   99,955     110,762   -9.8 %   103,145    
  Time less than $100K   121,757     138,754   -12.2 %   125,020    
  Total Short-Term Borrowings   60,393     71,178   -15.2 %   62,501    
  Shareholders’ Equity   625,409     593,028   5.5 %   613,860    
             
  Demand Deposits/          
  Total Deposits   44.9 %   43.9 %     44.7 %  
  Transaction & Savings           
  Deposits / Total Deposits   95.4 %   94.7 %     95.3 %  
        %    
    6/30’18YTD 6/30’17YTD Change    
             
  Total Deposits $ 4,837,721   $ 4,681,021   3.3 %    
  Noninterest Demand    2,167,226     2,052,483   5.6 %    
  Interest Bearing Transaction   925,034     880,429   5.1 %    
  Savings   1,520,540     1,496,592   1.6 %    
  Time greater than $100K   101,541     111,447   -8.9 %    
  Time less than $100K   123,380     140,070   -11.9 %    
  Total Short-Term Borrowings   61,441     69,888   -12.1 %    
  Shareholders’ Equity   619,666     587,736   5.4 %    
             
  Demand Deposits/          
  Total Deposits   44.8 %   43.8 %      
  Transaction & Savings           
  Deposits / Total Deposits   95.4 %   94.6 %      
             
5. Interest Yields Earned & Rates Paid.        
    (dollars in thousands)    
    Q2’18    
    Average Income/ Yield (a) /    
    Volume Expense Rate    
             
  Interest & Fee Income Earned          
  Total Earning Assets (FTE) $ 4,752,887   $ 37,044   3.12 %    
  Total Loans (FTE)     1,209,049     15,081   5.00 %    
  Commercial Loans (FTE)   295,971     3,804   5.16 %    
  Commercial RE Loans    550,427     7,804   5.69 %    
  Consumer Loans   362,651     3,473   3.84 %    
  Total Investments (FTE)   3,543,838     21,963   2.48 %    
             
  Interest Expense Paid          
  Total Earning Assets    4,752,887     459   0.04 %    
  Total Interest-Bearing Liabilities   2,729,671     459   0.07 %    
  Total Interest-Bearing Deposits   2,669,278     449   0.07 %    
  Interest-Bearing Transaction   924,542     60   0.03 %    
  Savings   1,523,024     224   0.06 %    
  Time less than $100K   121,757     70   0.23 %    
  Time greater than $100K   99,955     95   0.38 %    
  Total Short-Term Borrowings    60,393     10   0.06 %    
             
  Net Interest Income and           
  Margin (FTE)   $ 36,585   3.08 %    
             
    Q2’17    
    Average Income/ Yield (a) /    
    Volume Expense Rate    
             
  Interest & Fee Income Earned          
  Total Earning Assets (FTE) $ 4,598,296   $ 36,240   3.16 %    
  Total Loans (FTE)   1,333,135     15,747   4.74 %    
  Commercial Loans (FTE)   349,979     4,144   4.75 %    
  Commercial RE Loans    566,570     8,011   5.67 %    
  Consumer Loans   416,586     3,592   3.46 %    
  Total Investments (FTE)   3,265,161     20,493   2.51 %    
             
  Interest Expense Paid          
  Total Earning Assets    4,598,296     476   0.04 %    
  Total Interest-Bearing Liabilities   2,692,447     476   0.07 %    
  Total Interest-Bearing Deposits   2,621,269     465   0.07 %    
  Interest-Bearing Transaction   880,470     57   0.03 %    
  Savings   1,491,283     222   0.06 %    
  Time less than $100K   138,754     81   0.23 %    
  Time greater than $100K   110,762     105   0.38 %    
  Total Short-Term Borrowings    71,178     11   0.06 %    
             
  Net Interest Income and          
  Margin (FTE)   $ 35,764   3.12 %    
             
6. Noninterest Income.          
    (dollars in thousands except per-share amounts)  
        %    
    Q2’18 Q2’17 Change Q1’18  
             
  Service Charges on Deposits $ 4,645   $ 4,945   -6.1 % $ 4,752    
  Merchant Processing Services   2,305     2,052   12.3 %   2,420    
  Debit Card Fees   1,698     1,586   7.0 %   1,605    
  Other Service Fees   650     662   -1.7 %   631    
  ATM Processing Fees   698     654   6.6 %   664    
  Trust Fees   726     716   1.5 %   743    
  Financial Services Commissions   141     142   -0.5 %   114    
  Equity Securities Losses   (14 )       n/m       (36 )  
  Other Income   920     1,366   -32.7 %   1,062    
  Total Noninterest Income $ 11,769   $ 12,123   -2.9 % $ 11,955    
             
  Total Revenue (FTE) $ 48,354   $ 47,887   1.0 % $ 47,422    
  Noninterest Income/Revenue (FTE)   24.3 %   25.3 %     25.2 %  
  Service Charges/Avg. Deposits (a)   0.38 %   0.42 %     0.40 %  
  Total Revenues (FTE) Per Avg.           
  Common Share (a) $ 7.28   $ 7.30   -0.3 % $ 7.25    
             
    6/30’18YTD 6/30’17YTD Change    
             
  Service Charges on Deposits $ 9,397   $ 9,868   -4.8 %    
  Merchant Processing Services   4,725     3,927   20.3 %    
  Debit Card Fees   3,303     3,067   7.7 %    
  Other Service Fees   1,281     1,312   -2.3 %    
  ATM Processing Fees   1,362     1,229   10.8 %    
  Trust Fees   1,469     1,418   3.6 %    
  Financial Services Commissions   255     337   -24.3 %    
  Securities Losses   (50 )       n/m      
  Other Income   1,982     2,622   -24.4 %    
  Total Noninterest Income $ 23,724   $ 23,780   -0.2 %    
             
  Total Revenue (FTE) $ 95,776   $ 95,574   0.2 %    
  Noninterest Income/Revenue (FTE)   24.8 %   24.9 %      
  Service Charges/Avg. Deposits (a)   0.39 %   0.43 %      
  Total Revenues (FTE) Per Avg.           
  Common Share (a) $ 7.27   $ 7.35   -1.1 %    
             
7. Noninterest Expense.          
    (dollars in thousands)  
        %    
    Q2’18 Q2’17 Change Q1’18  
             
  Salaries & Benefits $ 13,186   $ 12,981   1.6 % $ 13,351    
  Occupancy and Equipment   4,864     4,776   1.8 %   4,691    
  Outsourced Data Processing   2,299     2,188   5.1 %   2,340    
  Amortization of           
  Identifiable Intangibles   453     762   -40.6 %   570    
  Professional Fees   871     410   112.7 %   785    
  Courier Service   422     438   -3.7 %   463    
  Other Operating   1,882     2,841   -33.8 %   2,014    
  Total Noninterest Expense $ 23,977   $ 24,396   -1.7 % $ 24,214    
             
  Noninterest Expense/          
  Avg. Earning Assets (a)   2.02 %   2.13 %     2.08 %  
  Noninterest Expense/Revenues (FTE)   49.6 %   50.9 %     51.1 %  
        %    
    6/30’18YTD 6/30’17YTD Change    
             
  Salaries & Benefits $ 26,537   $ 26,051   1.9 %    
  Occupancy and Equipment   9,555     9,663   -1.1 %    
  Outsourced Data Processing   4,639     4,327   7.2 %    
  Amortization of           
  Identifiable Intangibles   1,023     1,562   -34.5 %    
  Professional Fees   1,656     1,021   62.2 %    
  Courier Service   885     859   3.1 %    
  Other Operating   3,896     5,528   -29.5 %    
  Total Noninterest Expense $ 48,191   $ 49,011   -1.7 %    
             
  Noninterest Expense/          
  Avg. Earning Assets (a)   2.05 %   2.14 %      
  Noninterest Expense/Revenues (FTE)   50.3 %   51.3 %      
             
8. Allowance for Loan Losses.          
    (dollars in thousands)  
        %    
    Q2’18 Q2’17 Change Q1’18  
             
  Average Total Loans $ 1,209,049   $ 1,333,135   -9.3 % $ 1,243,750    
             
  Allowance for Loan Loss (ALL)         
  Beginning of Period  $ 23,081   $ 24,919   -7.4 % $ 23,009    
  Reversal of Provision for Loan Losses              (1,900 ) n/m          
  Net ALL (Losses) Recoveries   (41 )   1,084   n/m     72    
  ALL End of Period $ 23,040   $ 24,103   -4.4 % $ 23,081    
  ALL (Losses) Recoveries /         
  Gross ALL Losses    95 %   158 %     105 %  
             
  Net ALL Losses (Recoveries) /          
  Avg. Total Loans (a)   0.01 %   -0.33 %     -0.02 %  
        %    
    6/30’18YTD 6/30’17YTD Change    
             
  Average Total Loans $ 1,226,304   $ 1,344,132   -8.8 %    
             
  Allowance for Loan Loss (ALL)         
  Beginning of Period  $ 23,009   $ 25,954   -11.3 %    
  Reversal of Provision for Loan Losses              (1,900 ) n/m      
  Net ALL Recoveries   31     49   n/m      
  ALL End of Period $ 23,040   $ 24,103   -4.4 %    
  ALL Recoveries/Gross ALL Losses      101 %   101 %      
             
  Net ALL Recoveries /          
  Avg. Total Loans (a)   -0.01 %   -0.01 %      
             
9. Credit Quality.          
    (dollars in thousands)  
        %    
    6/30/18 6/30/17 Change 3/31/18  
             
  Nonperforming Loans:          
  Nonperforming Nonaccrual $ 783   $ 2,215   -64.7 % $ 2,030    
  Performing Nonaccrual     4,110       4,480   -8.3 %     4,110    
  Total Nonaccrual Loans   4,893     6,695   -26.9 %   6,140    
  90+ Days Past Due Accruing Loans   193     186   3.8 %   255    
  Total   5,086     6,881   -26.1 %   6,395    
  Repossessed Loan Collateral    939     1,645   -42.9 %   1,376    
   Total Nonperforming Assets $ 6,025   $ 8,526   -29.3 % $ 7,771    
             
  Total Loans Outstanding  $ 1,200,192   $ 1,318,341   -9.0 % $ 1,228,584    
             
  Total Assets  $ 5,577,844   $ 5,393,350   3.4 % $ 5,551,036    
             
  Loans:          
  Allowance for Loan Losses $ 23,040   $ 24,103   -4.4 % $ 23,081    
  Allowance/Loans   1.92 %   1.83 %     1.88 %  
  Nonperforming Loans/Total Loans   0.42 %   0.52 %     0.52 %  
             
10. Capital.          
    (in thousands, except per-share amounts)  
        %    
    6/30/18 6/30/17 Change 3/31/18  
             
  Shareholders’ Equity $ 586,138   $ 595,594   -1.6 % $ 582,083    
  Total Assets   5,577,844     5,393,350   3.4 %   5,551,036    
             
  Shareholders’ Equity/          
  Total Assets   10.51 %   11.04 %     10.49 %  
  Shareholders’ Equity/          
  Total Loans   48.84 %   45.18 %     47.38 %  
  Tangible Common Equity Ratio   8.47 %   8.90 %     8.42 %  
  Common Shares Outstanding   26,649     26,304   1.3 %   26,591    
  Common Equity Per Share $ 21.99   $ 22.64   -2.9 % $ 21.89    
  Market Value Per Common Share $ 56.51   $ 56.04   0.8 % $ 58.08    
             
  Share Repurchase Programs          
    (shares in thousands)  
        %    
    Q2’18 Q2’17 Change Q1’18  
             
  Total Shares Repurchased     9       6   n/m          
  Average Repurchase Price $ 58.46   $ 56.51   n/m   $    
  Net Shares Issued     (58 )   (21 ) n/m     (166 )  
             
        %    
    6/30’18YTD 6/30’17YTD Change    
             
  Total Shares Repurchased     9     6   n/m      
  Average Repurchase Price $ 58.46   $ 56.51   n/m      
  Net Shares Issued   (224 )   (397 ) n/m      
             
11. Period-End Balance Sheets.          
    (unaudited, dollars in thousands)  
        %    
    6/30/18 6/30/17 Change 3/31/18  
  Assets:          
  Cash and Due from Banks $ 629,146   $ 529,362   18.8 % $ 555,607    
             
  Investment Securities:          
  Equity Securities   1,750     9,477   n/m     1,764    
  Debt Securities Available For Sale   2,363,194     1,966,679   20.2 %   2,351,970    
  Debt Securities Held to Maturity   1,076,456     1,261,321   -14.7 %   1,114,287    
             
  Loans   1,200,192     1,318,341   -9.0 %   1,228,584    
  Allowance For Loan Losses   (23,040 )   (24,103 ) -4.4 %   (23,081 )  
  Total Loans, net   1,177,152     1,294,238   -9.0 %   1,205,503    
             
  Other Real Estate Owned   939     1,645   -42.9 %   1,376    
  Premises and Equipment, net   35,774     35,564   0.6 %   35,790    
  Identifiable Intangibles, net   2,827     5,365   -47.3 %   3,280    
  Goodwill    121,673     121,673   0.0 %   121,673    
  Other Assets   168,933     168,026   0.5 %   159,786    
             
  Total Assets $ 5,577,844   $ 5,393,350   3.4 % $ 5,551,036    
             
  Liabilities and Shareholders’ Equity:          
  Deposits:          
  Noninterest Bearing $ 2,205,971   $ 2,079,608   6.1 % $ 2,179,157    
  Interest-Bearing Transaction   939,002     885,516   6.0 %   924,081    
  Savings   1,526,228     1,470,978   3.8 %   1,540,192    
  Time   215,921     246,468   -12.4 %   224,437    
  Total Deposits   4,887,122     4,682,570   4.4 %   4,867,867    
             
  Short-Term Borrowed Funds   68,894     75,769   -9.1 %   65,356    
  Other Liabilities   35,690     39,417   -9.5 %   35,730    
  Total Liabilities   4,991,706     4,797,756   4.0 %   4,968,953    
             
  Shareholders’ Equity:          
  Common Equity:          
  Paid-In Capital   444,871     426,012   4.4 %   441,350    
  Accumulated Other          
  Comprehensive Loss   (49,900 )   (5,864 ) n/m     (43,452 )  
  Retained Earnings   191,167     175,446   9.0 %   184,185    
  Total Shareholders’ Equity   586,138     595,594   -1.6 %   582,083    
             
  Total Liabilities and           
  Shareholders’ Equity $ 5,577,844   $ 5,393,350   3.4 % $ 5,551,036    
             
12. Income Statements.          
    (unaudited, in thousands except per-share amounts)  
        %    
    Q2’18 Q2’17 Change Q1’18  
  Interest & Fee Income:          
  Loans $ 14,957   $ 15,468   -3.3 % $ 14,697    
  Investment Securities:          
  Equity Securities   86     70   22.2 %   85    
  Debt Securities Available for Sale   14,323     10,639   34.6 %   13,551    
  Debt Securities Held to Maturity   6,216     6,986   -11.0 %   6,174    
  Total Interest & Fee Income   35,582     33,163   7.3 %   34,507    
             
  Interest Expense:          
  Transaction Deposits   60     57   5.9 %   60    
  Savings Deposits   224     222   1.0 %   222    
  Time Deposits   165     186   -11.3 %   168    
  Short-Term Borrowed Funds   10     11   -15.8 %   9    
  Total Interest Expense   459     476   -3.6 %   459    
             
  Net Interest Income   35,123     32,687   7.5 %   34,048    
             
  Reversal of Provision for Loan Losses           (1,900 ) n/m          
             
  Noninterest Income:          
  Service Charges    4,645     4,945   -6.1 %   4,752    
  Merchant Processing Services   2,305     2,052   12.3 %   2,420    
  Debit Card Fees   1,698     1,586   7.0 %   1,605    
  Other Service Fees   650     662   -1.7 %   631    
  ATM Processing Fees   698     654   6.6 %   664    
  Trust Fees   726     716   1.5 %   743    
  Financial Services Commissions   141     142   -0.5 %   114    
  Equity Securities Losses   (14 )       n/m       (36 )  
  Other   920     1,366   -32.7 %   1,062    
  Total Noninterest Income   11,769     12,123   -2.9 %   11,955    
             
  Noninterest Expense:          
  Salaries and  Benefits   13,186     12,981   1.6 %   13,351    
  Occupancy and Equipment   4,864     4,776   1.8 %   4,691    
  Outsourced Data Processing   2,299     2,188   5.1 %   2,340    
  Amortization of Identifiable Intangibles   453     762   -40.6 %   570    
  Professional Fees   871     410   112.7 %   785    
  Courier Service   422     438   -3.7 %   463    
  Other   1,882     2,841   -33.8 %   2,014    
  Total Noninterest Expense   23,977     24,396   -1.7 %   24,214    
             
  Income Before Income Taxes   22,915     22,314   2.7 %   21,789    
  Income Tax Provision   4,905     6,515   -24.7 %   4,283    
  Net Income $ 18,010   $ 15,799   14.0 % $ 17,506    
             
  Average Common Shares Outstanding   26,630     26,299   1.3 %   26,532    
  Diluted Common Shares Outstanding   26,728     26,402   1.2 %   26,665    
             
  Per Common Share Data:          
  Basic Earnings $ 0.68   $ 0.60   13.3 % $ 0.66    
  Diluted Earnings   0.67     0.60   11.7 %   0.66    
  Dividends Paid   0.40     0.39   2.6 %   0.40    
             
        %    
    6/30’18YTD 6/30’17YTD Change    
  Interest & Fee Income:          
  Loans $ 29,654   $ 31,248   -5.1 %    
  Investment Securities:          
  Equity Securities   171     144   18.5 %    
  Debt Securities Available for Sale   27,874     20,814   33.9 %    
  Debt Securities Held to Maturity   12,390     14,281   -13.2 %    
  Total Interest & Fee Income   70,089     66,487   5.4 %    
             
  Interest Expense:          
  Transaction Deposits   120     114   5.6 %    
  Savings Deposits   446     445   0.2 %    
  Time Deposits   333     375   -11.2 %    
  Short-Term Borrowed Funds   19     22   -15.1 %    
  Total Interest Expense   918     956   -4.0 %    
             
  Net Interest Income   69,171     65,531   5.6 %    
             
  Reversal of Provision for Loan Losses           (1,900 ) n/m      
             
  Noninterest Income:          
  Service Charges    9,397     9,868   -4.8 %    
  Merchant Processing Services   4,725     3,927   20.3 %    
  Debit Card Fees   3,303     3,067   7.7 %    
  Other Service Fees   1,281     1,312   -2.3 %    
  ATM Processing Fees   1,362     1,229   10.8 %    
  Trust Fees   1,469     1,418   3.6 %    
  Financial Services Commissions   255     337   -24.3 %    
  Securities Losses   (50 )       n/m      
  Other   1,982     2,622   -24.4 %    
  Total Noninterest Income   23,724     23,780   -0.2 %    
             
  Noninterest Expense:          
  Salaries and  Benefits   26,537     26,051   1.9 %    
  Occupancy and Equipment   9,555     9,663   -1.1 %    
  Outsourced Data Processing   4,639     4,327   7.2 %    
  Amortization of Identifiable Intangibles   1,023     1,562   -34.5 %    
  Professional Fees   1,656     1,021   62.2 %    
  Courier Service   885     859   3.1 %    
  Other   3,896     5,528   -29.5 %    
  Total Noninterest Expense   48,191     49,011   -1.7 %    
             
  Income Before Income Taxes   44,704     42,200   5.9 %    
  Income Tax Provision   9,188     11,352   -19.1 %    
  Net Income $ 35,516   $ 30,848   15.1 %    
             
  Average Common Shares Outstanding   26,581     26,235   1.3 %    
  Diluted Common Shares Outstanding   26,696     26,366   1.3 %    
             
  Per Common Share Data:          
  Basic Earnings $ 1.34   $ 1.18   13.6 %    
  Diluted Earnings   1.33     1.17   13.7 %    
  Dividends Paid   0.80     0.78   2.6 %    
             
  Footnotes and Abbreviations:          
  Certain amounts in prior periods have been reclassified to conform to the current presentation.    
  (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