Westamerica Bancorporation Reports Fourth Quarter 2018 Financial Results

Loading...
Loading...

SAN RAFAEL, Calif., Jan. 17, 2019 (GLOBE NEWSWIRE) -- Westamerica Bancorporation WABC, parent company of Westamerica Bank, generated net income for the fourth quarter 2018 of $19.1 million and diluted earnings per common share ("EPS") of $0.71 compared to $17.0 million and EPS of $0.63 for the third quarter 2018. Third quarter 2018 results include a $585 thousand tax-exempt life insurance policy gain and a $3.5 million loss contingency settlement, which on an aggregate basis reduced EPS $0.07.

"Fourth quarter 2018 net interest income demonstrated continuing improvement as higher market interest rates benefit the yields on our interest-earning loans and securities. Our annualized funding costs were unchanged at 0.04 percent of interest-earning assets due to the predominance of low-cost checking and savings accounts in our deposit portfolio. The annualized net interest margin on a fully-taxable equivalent ("FTE") basis rose from 3.00 percent for the third quarter 2018 to 3.06 percent for the fourth quarter 2018. Asset quality remains solid with nonperforming assets totaling only $5.8 million at December 31, 2018," said Chairman, President and CEO David Payne. "Fourth quarter 2018 results generated an annualized 11.7 percent return on average common equity. These results allowed the Board of Directors to approve a $0.40 per share dividend in the fourth quarter 2018 for our shareholders," concluded Payne.

Net interest income (FTE) was $40.3 million for the fourth quarter 2018, compared to $39.5 million for the third quarter 2018 and $37.9 million for the fourth quarter 2017. The annualized net interest margin (FTE) was 3.06 percent for the fourth quarter 2018, compared to 3.00 percent for the third quarter 2018 and 2.96 percent for the fourth quarter 2017. Checking and savings deposits, which are less sensitive to rising interest rates than time deposits, represented ninety-six percent of the Company's average deposit base during the fourth quarter 2018.

The Company recognized no provision for loan losses for the fourth quarter 2018 given low levels of nonperforming loans and other credit quality attributes.

Noninterest income for the fourth quarter 2018 totaled $11.9 million, compared to $12.5 million for the third quarter 2018, and $20.3 million for the fourth quarter 2017. Noninterest income for the third quarter 2018 included a tax-exempt life insurance policy gain of $585 thousand. Noninterest income for the fourth quarter 2017 included an $8.0 million gain on the sale of equity securities.

Noninterest expense for the fourth quarter 2018 totaled $25.8 million, compared to $29.4 million for the third quarter 2018 and $31.4 million for the fourth quarter 2017. Noninterest expense for the third quarter 2018 included a $3.5 million loss contingency settlement to dismiss a lawsuit. Noninterest expense for the fourth quarter 2017 included a $5.5 million loss contingency to provide refunds of revenue to some customers. Loss contingencies represent estimated liabilities which are subject to revision.

The tax rate (FTE) applied to pre-tax income (FTE) was 27.8 percent for the fourth quarter 2018, compared to 25.0 percent for the third quarter 2018 and 84.5 percent for the fourth 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 "Act"). The Act was signed into law in the fourth quarter 2017, requiring re-measurement of deferred tax assets which resulted in a $12.3 million charge to the fourth quarter 2017 book tax provision. The book tax provisions for the fourth quarter 2018 and third quarter 2018 include tax benefits of $7 thousand and $152 thousand, respectively, for tax deductions from the exercise of employee stock options which exceed related compensation expense recognized in the financial statements.

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 & Chief Financial Officer
     707-863-6840
     investments@westamerica.com


FORWARD-LOOKING INFORMATION:

Loading...
Loading...

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 September 30, 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.

     
WESTAMERICA BANCORPORATION    
FINANCIAL HIGHLIGHTS     
December 31, 2018     
       
1. Net Income Summary.     
  (in thousands except per-share amounts) 
    %  
  Q4'18Q4'17ChangeQ3'18 
       
 Net Interest and Fee Income (FTE)$40,288  $37,918  6.2%$39,498   
 Reversal of Provision for Loan Losses   -     -  n/m    -   
 Noninterest Income 11,897   20,300  -41.4% 12,528   
 Noninterest Expense 25,787   31,441  -18.0% 29,366   
 Income Before Taxes (FTE) 26,398   26,777  -1.4% 22,660   
 Income Tax Provision (FTE) 7,343   22,617  n/m  5,667   
 Net Income$19,055  $4,160  n/m $16,993   
       
 Average Common Shares Outstanding 26,729   26,384  1.3% 26,701   
 Diluted Average Common Shares 26,815   26,538  1.0% 26,815   
       
 Operating Ratios:     
 Basic Earnings Per Common Share$0.71  $0.16  n/m $0.64   
 Diluted Earnings Per Common Share 0.71   0.16  n/m  0.63   
 Return On Assets (a) 1.33% 0.30%  1.19% 
 Return On Common Equity (a) 11.7% 2.7%  10.6% 
 Net Interest Margin (FTE) (a) 3.06% 2.96%  3.00% 
 Efficiency Ratio (FTE) 49.4% 54.0%  56.4% 
       
 Dividends Paid Per Common Share$0.40  $0.40  0.0%$0.40   
 Common Dividend Payout Ratio    56% 250%  63% 
       
    %  
  12/31'18YTD12/31'17YTDChange  
       
 Net Interest and Fee Income (FTE)$155,410  $148,594  4.6%  
 Reversal of Provision for Loan Losses   -     (1,900)n/m   
 Noninterest Income 48,149   56,628  -15.0%  
 Noninterest Expense 106,916   107,768  -0.8%  
 Income Before Taxes (FTE) 96,643   99,354  -2.7%  
 Income Tax Provision (FTE) 25,079   49,329  n/m   
 Net Income$71,564  $50,025  n/m   
       
 Average Common Shares Outstanding 26,649   26,291  1.4%  
 Diluted Average Common Shares 26,756   26,419  1.3%  
       
 Operating Ratios:     
 Basic Earnings Per Common Share$2.69  $1.90  n/m   
 Diluted Earnings Per Common Share 2.67   1.89  n/m   
 Return On Assets 1.27% 0.92%   
 Return On Common Equity 11.3% 8.4%   
 Net Interest Margin (FTE) 2.98% 2.95%   
 Efficiency Ratio (FTE) 52.5% 52.5%   
       
 Dividends Paid Per Common Share$1.60  $1.57  1.9%  
 Common Dividend Payout Ratio    60% 83%   
       
2. Net Interest Income.     
  (dollars in thousands) 
    %  
  Q4'18Q4'17ChangeQ3'18 
       
 Interest and Fee Income (FTE)$40,802  $38,389  6.3%$40,025   
 Interest Expense 514   471  9.1% 527   
 Net Interest and Fee Income (FTE)$40,288  $37,918  6.2%$39,498   
       
 Average Earning Assets$5,270,708  $5,112,354  3.1%$5,231,257   
 Average Interest-     
   Bearing Liabilities 2,691,370   2,701,190  -0.4% 2,733,670   
       
 Yield on Earning Assets (FTE) (a) 3.10% 3.00%  3.04% 
 Cost of Funds (a) 0.04% 0.04%  0.04% 
 Net Interest Margin (FTE) (a) 3.06% 2.96%  3.00% 
 Interest Expense/     
   Interest-Bearing Liabilities (a) 0.08% 0.07%  0.08% 
 Net Interest Spread (FTE) (a) 3.02% 2.93%  2.96% 
       
    %  
  12/31'18YTD12/31'17YTDChange  
       
 Interest and Fee Income (FTE)$157,369  $150,494  4.6%  
 Interest Expense 1,959   1,900  3.1%  
 Net Interest and Fee Income (FTE)$155,410  $148,594  4.6%  
       
 Average Earning Assets$5,212,635  $5,028,373  3.7%  
 Average Interest-     
   Bearing Liabilities 2,722,149   2,696,399  1.0%  
       
 Yield on Earning Assets (FTE) 3.02% 2.99%   
 Cost of Funds 0.04% 0.04%   
 Net Interest Margin (FTE) 2.98% 2.95%   
 Interest Expense/     
   Interest-Bearing Liabilities 0.07% 0.07%   
 Net Interest Spread (FTE) 2.95% 2.92%   
       
3. Loans & Other Earning Assets.     
  (average volume, dollars in thousands) 
    %  
  Q4'18Q4'17ChangeQ3'18 
       
 Total Assets$5,680,321  $5,534,700  2.6%$5,648,004   
 Total Earning Assets 5,270,708   5,112,354  3.1% 5,231,257   
 Total Loans 1,189,744   1,285,748  -7.5% 1,194,874   
   Commercial Loans 271,165   327,790  -17.3% 288,634   
   Commercial RE Loans  570,059   575,984  -1.0% 554,081   
   Consumer Loans 348,520   381,974  -8.8% 352,159   
 Total Investment Securities 3,692,951   3,397,149  8.7% 3,591,637   
   Equity Securities 1,733   2,675  -35.2% 1,749   
   Debt Securities Available For Sale 2,684,431   2,213,379  21.3% 2,538,837   
   Debt Securities Held To Maturity 1,006,787   1,181,095  -14.8% 1,051,051   
 Total Interest Bearing Cash 388,013   429,457  -9.7% 444,746   
       
 Loans/Deposits 24.2% 26.7%  24.4% 
       
    %  
  12/31'18YTD12/31'17YTDChange  
       
 Total Assets$5,620,618  $5,439,682  3.3%  
 Total Earning Assets 5,212,635   5,028,373  3.7%  
 Total Loans 1,209,167   1,315,202  -8.1%  
   Commercial Loans 292,893   339,234  -13.7%  
   Commercial RE Loans  557,679   567,006  -1.6%  
   Consumer Loans 358,595   408,962  -12.3%  
 Total Investment Securities 3,577,597   3,307,137  8.2%  
   Equity Securities 1,809   2,950  -38.7%  
   Debt Securities Available For Sale 2,503,356   2,049,506  22.1%  
   Debt Securities Held To Maturity 1,072,432   1,254,681  -14.5%  
 Total Interest Bearing Cash 425,871   406,034  4.9%  
       
 Loans/Deposits 24.8% 27.9%   
       
4. Deposits, Other Interest-Bearing Liabilities & Equity.   
  (average volume, dollars in thousands) 
    %  
  Q4'18Q4'17ChangeQ3'18 
       
 Total Deposits$4,917,901  $4,811,035  2.2%$4,893,859   
   Noninterest Demand  2,280,174   2,172,678  4.9% 2,223,678   
   Interest Bearing Transaction 927,676   899,822  3.1% 935,257   
   Savings 1,510,358   1,501,872  0.6% 1,526,100   
   Time greater than $100K 86,141   106,746  -19.3% 90,668   
   Time less than $100K 113,552   129,917  -12.6% 118,156   
 Total Short-Term Borrowings 53,643   62,833  -14.6% 63,489   
 Shareholders' Equity 646,129   610,200  5.9% 636,965   
       
 Demand Deposits/     
   Total Deposits 46.4% 45.2%  45.4% 
 Transaction & Savings      
   Deposits / Total Deposits 95.9% 95.1%  95.7% 
       
    %  
  12/31'18YTD12/31'17YTDChange  
       
 Total Deposits$4,872,081  $4,722,250  3.2%  
   Noninterest Demand  2,209,924   2,095,522  5.5%  
   Interest Bearing Transaction 928,277   888,116  4.5%  
   Savings 1,519,375   1,492,725  1.8%  
   Time greater than $100K 94,919   109,563  -13.4%  
   Time less than $100K 119,586   136,324  -12.3%  
 Total Short-Term Borrowings 59,992   69,671  -13.9%  
 Shareholders' Equity 630,697   596,356  5.8%  
       
 Demand Deposits/     
   Total Deposits 45.4% 44.4%   
 Transaction & Savings      
   Deposits / Total Deposits 95.6% 94.8%   
       
5. Interest Yields Earned & Rates Paid.    
  (dollars in thousands)  
  Q4'18  
  AverageIncome/Yield (a) /  
  VolumeExpenseRate  
       
 Interest & Fee Income Earned     
   Total Earning Assets (FTE)$5,270,708  $40,802  3.10%  
   Total Loans (FTE)   1,189,744   14,894  4.97%  
   Commercial Loans (FTE) 271,165   3,698  5.41%  
   Commercial RE Loans  570,059   7,607  5.29%  
   Consumer Loans 348,520   3,589  4.09%  
   Total Investments (FTE) 3,692,951   23,916  2.59%  
   Total Interest Bearing Cash 388,013   1,992  2.23%  
       
 Interest Expense Paid     
   Total Earning Assets  5,270,708   514  0.04%  
   Total Interest-Bearing Liabilities 2,691,370   514  0.08%  
   Total Interest-Bearing Deposits 2,637,727   506  0.08%  
   Interest-Bearing Transaction 927,676   124  0.05%  
   Savings 1,510,358   227  0.06%  
   Time less than $100K 113,552   70  0.24%  
   Time greater than $100K 86,141   85  0.39%  
   Total Short-Term Borrowings  53,643   8  0.06%  
       
 Net Interest Income and      
 Margin (FTE) $40,288  3.06%  
       
  Q4'17  
  AverageIncome/Yield (a) /  
  VolumeExpenseRate  
       
 Interest & Fee Income Earned     
   Total Earning Assets (FTE)$5,112,354  $38,389  3.00%  
   Total Loans (FTE) 1,285,748   15,671  4.84%  
   Commercial Loans (FTE) 327,790   4,168  5.05%  
   Commercial RE Loans  575,984   8,009  5.52%  
   Consumer Loans 381,974   3,494  3.63%  
   Total Investments (FTE) 3,397,149   21,444  2.52%  
   Total Interest Bearing Cash 429,457   1,274  1.29%  
       
 Interest Expense Paid     
   Total Earning Assets  5,112,354   471  0.04%  
   Total Interest-Bearing Liabilities 2,701,190   471  0.07%  
   Total Interest-Bearing Deposits 2,638,357   461  0.07%  
   Interest-Bearing Transaction 899,822   60  0.03%  
   Savings 1,501,872   225  0.06%  
   Time less than $100K 129,917   75  0.23%  
   Time greater than $100K 106,746   101  0.38%  
   Total Short-Term Borrowings  62,833   10  0.06%  
       
 Net Interest Income and     
 Margin (FTE) $37,918  2.96%  
       
6. Noninterest Income.     
  (dollars in thousands except per-share amounts) 
    %  
  Q4'18Q4'17ChangeQ3'18 
       
 Service Charges on Deposits$4,496  $4,756  -5.5%$4,615   
 Merchant Processing Services 2,440   2,346  4.0% 2,464   
 Debit Card Fees 1,685   1,569  7.3% 1,656   
 Other Service Fees 620   620  0.0% 665   
 ATM Processing Fees 703   696  1.0% 687   
 Trust Fees 737   739  -0.3% 733   
 Life Insurance Gains   -     -    n/m    585   
 Financial Services Commissions 112   155  -28.0% 132   
 Equity Securities Gains (Losses) 14     7,955  n/m    (16) 
 Other Income 1,090   1,464  -25.5% 1,007   
 Total Noninterest Income$11,897  $20,300  -41.4%$12,528   
       
   Total Revenue (FTE)$52,185  $58,218  -10.4%$52,026   
   Noninterest Income/Revenue (FTE) 22.8% 34.9%  24.1% 
   Service Charges/Avg. Deposits (a) 0.36% 0.39%  0.37% 
   Total Revenues (FTE) Per Avg.      
 Common Share (a)$7.75  $8.75  -11.5%$7.73   
       
    %  
  12/31'18YTD12/31'17YTDChange  
       
 Service Charges on Deposits$18,508  $19,612  -5.6%  
 Merchant Processing Services 9,630   8,426  14.3%  
 Debit Card Fees 6,643   6,421  3.5%  
 Other Service Fees 2,567   2,584  -0.7%  
 ATM Processing Fees 2,752   2,610  5.4%  
 Trust Fees 2,938   2,875  2.2%  
 Life Insurance Gains 585     -    n/m   
 Financial Services Commissions 499   639  -21.9%  
 Equity Securities (Losses) Gains (52)   7,955  n/m   
 Other Income 4,079   5,506  -25.9%  
 Total Noninterest Income$48,149  $56,628  -15.0%  
       
   Total Revenue (FTE)$203,559  $205,222  -0.8%  
   Noninterest Income/Revenue (FTE) 23.7% 27.6%   
   Service Charges/Avg. Deposits 0.38% 0.42%   
   Total Revenues (FTE) Per Avg.      
 Common Share$7.64  $7.81  -2.1%  
       
7. Noninterest Expense.     
  (dollars in thousands) 
    %  
  Q4'18Q4'17ChangeQ3'18 
       
 Salaries & Benefits$13,055  $12,652  3.2%$13,415   
 Occupancy and Equipment 5,314   4,860  9.3% 4,809   
 Loss Contingency (1)   -     5,542  n/m    3,500   
 Outsourced Data Processing 2,299   2,325  -1.1% 2,292   
 Amortization of      
   Identifiable Intangibles 447   755  -40.8% 451   
 Professional Fees 565   627  -9.9% 621   
 Impairment of Tax Credit Investments   -     625  n/m    -   
 Courier Service 446   423  5.5% 448   
 Other Operating 3,661   3,632  0.8% 3,830   
 Total Noninterest Expense$25,787  $31,441  -18.0%$29,366   
       
 Noninterest Expense/     
   Avg. Earning Assets (a) 1.94% 2.44%  2.23% 
 Noninterest Expense/Revenues (FTE) 49.4% 54.0%  56.4% 
       
    %  
  12/31'18YTD12/31'17YTDChange  
       
 Salaries & Benefits$53,007  $51,519  2.9%  
 Occupancy and Equipment 19,679   19,430  1.3%  
 Outsourced Data Processing 9,229   9,035  2.2%  
 Loss Contingency (1) 3,500     5,542  n/m   
 Amortization of      
   Identifiable Intangibles 1,921   3,077  -37.6%  
 Professional Fees 2,842   2,161  31.5%  
 Impairment of Tax Credit Investments   -     625  n/m   
 Courier Service 1,779   1,732  2.7%  
 Other Operating 14,959   14,647  2.1%  
 Total Noninterest Expense$106,916  $107,768  -0.8%  
       
 Noninterest Expense/     
   Avg. Earning Assets 2.05% 2.14%   
 Noninterest Expense/Revenues (FTE) 52.5% 52.5%   
       
8. Allowance for Loan Losses.     
  (dollars in thousands) 
    %  
  Q4'18Q4'17ChangeQ3'18 
       
 Average Total Loans$1,189,744  $1,285,748  -7.5%$1,194,874   
       
 Allowance for Loan Loss (ALL)     
 Beginning of Period $22,027  $23,628  -6.8%$23,040   
 Reversal of Provision for Loan Losses      -     -  n/m    -   
 Net ALL Losses (676) (619)n/m  (1,013) 
 ALL End of Period$21,351  $23,009  -7.2%$22,027   
 Net ALL Losses / Gross ALL Losses    44% 47%  31% 
       
       
 Net ALL Losses / Avg. Total Loans (a) 0.23% 0.19%  0.34% 
    %  
  12/31'18YTD12/31'17YTDChange  
       
 Average Total Loans$1,209,167  $1,315,202  -8.1%  
       
 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 Losses (1,658) (1,045)n/m   
 ALL End of Period$21,351  $23,009  -7.2%  
 Net ALL Losses / Gross ALL Losses    66% 82%   
       
 Net ALL Losses / Avg. Total Loans 0.14% 0.08%   
       
9. Credit Quality.     
  (dollars in thousands) 
    %  
  12/31/1812/31/17Change9/30/18 
       
 Nonperforming Loans:     
   Nonperforming Nonaccrual$998  $1,641  -39.2%$1,611   
   Performing Nonaccrual   3,870     4,285  -9.7%   3,870   
 Total Nonaccrual Loans 4,868   5,926  -17.9% 5,481   
 90+ Days Past Due Accruing Loans 551   531  3.8% 361   
 Total 5,419   6,457  -16.1% 5,842   
 Repossessed Loan Collateral  350   1,426  -75.5% 620   
  Total Nonperforming Assets$5,769  $7,883  -26.8%$6,462   
       
 Total Loans Outstanding $1,207,202  $1,287,982  -6.3%$1,196,955   
       
 Total Assets $5,568,526  $5,513,046  1.0%$5,529,463   
       
 Loans:     
 Allowance for Loan Losses$21,351  $23,009  -7.2%$22,027   
 Allowance/Loans 1.77% 1.79%  1.84% 
 Nonperforming Loans/Total Loans 0.45% 0.50%  0.49% 
       
10. Capital.     
  (in thousands, except per-share amounts) 
    %  
  12/31/1812/31/17Change9/30/18 
       
 Shareholders' Equity$615,591  $590,239  4.3%$592,591   
 Total Assets 5,568,526   5,513,046  1.0% 5,529,463   
       
 Shareholders' Equity/     
   Total Assets 11.05% 10.71%  10.72% 
 Shareholders' Equity/     
   Total Loans 50.99% 45.83%  49.51% 
 Tangible Common Equity Ratio 9.04% 8.63%  8.67% 
 Common Shares Outstanding 26,730   26,425  1.2% 26,727   
 Common Equity Per Share$23.03  $22.34  3.1%$22.17   
 Market Value Per Common Share$55.68  $59.55  -6.5%$60.16   
       
 Share Repurchase Programs     
  (shares in thousands) 
    %  
  Q4'18Q4'17ChangeQ3'18 
       
 Total Shares Repurchased   -     -  n/m    -   
   Average Repurchase Price$-  $-  n/m $-   
 Net Shares Issued   (3) (106)n/m  (78) 
       
    %  
  12/31'18YTD12/31'17YTDChange  
       
 Total Shares Repurchased   9   6  n/m   
   Average Repurchase Price$58.46  $56.51  n/m   
 Net Shares Issued (305) (518)n/m   
       
11. Period-End Balance Sheets.     
  (unaudited, dollars in thousands) 
    %  
  12/31/1812/31/17Change9/30/18 
 Assets:     
   Cash and Due from Banks$420,284  $575,002  -26.9%$522,660   
       
   Investment Securities:     
   Equity Securities 1,747   1,800  -2.9% 1,734   
   Debt Securities Available For Sale 2,654,670   2,191,707  21.1% 2,478,908   
   Debt Securities Held to Maturity 984,609   1,158,864  -15.0% 1,025,699   
       
   Loans 1,207,202   1,287,982  -6.3% 1,196,955   
   Allowance For Loan Losses (21,351) (23,009)-7.2% (22,027) 
   Total Loans, net 1,185,851   1,264,973  -6.3% 1,174,928   
       
   Other Real Estate Owned 350   1,426  -75.5% 620   
   Premises and Equipment, net 34,507   35,301  -2.3% 35,391   
   Identifiable Intangibles, net 1,929   3,850  -49.9% 2,376   
   Goodwill  121,673   121,673  0.0% 121,673   
   Other Assets 162,906   158,450  2.8% 165,474   
       
 Total Assets$5,568,526  $5,513,046  1.0%$5,529,463   
       
 Liabilities and Shareholders' Equity:     
   Deposits:     
   Noninterest Bearing$2,243,251  $2,197,526  2.1%$2,211,028   
   Interest-Bearing Transaction 929,346   904,245  2.8% 909,954   
   Savings 1,498,991   1,494,024  0.3% 1,510,015   
   Time 195,251   231,818  -15.8% 204,840   
   Total Deposits 4,866,839   4,827,613  0.8% 4,835,837   
       
   Short-Term Borrowed Funds 51,247   58,471  -12.4% 61,756   
   Other Liabilities 34,849   36,723  -5.1% 39,279   
 Total Liabilities 4,952,935   4,922,807  0.6% 4,936,872   
       
 Shareholders' Equity:     
   Common Equity:     
   Paid-In Capital 449,746   433,267  3.8% 449,180   
   Accumulated Other     
   Comprehensive Loss (39,996) (16,832)n/m  (54,066) 
   Retained Earnings 205,841   173,804  18.4% 197,477   
 Total Shareholders' Equity 615,591   590,239  4.3% 592,591   
       
 Total Liabilities and      
   Shareholders' Equity$5,568,526  $5,513,046  1.0%$5,529,463   
       
12. Income Statements.     
  (unaudited, in thousands except per-share amounts) 
    %  
  Q4'18Q4'17ChangeQ3'18 
 Interest & Fee Income:     
   Loans$14,783  $15,410  -4.1%$14,593   
   Investment Securities:     
   Equity Securities 98   79  24.1% 85   
   Debt Securities Available for Sale 16,865   12,280  37.3% 15,644   
   Debt Securities Held to Maturity 5,710   6,435  -11.3% 5,931   
   Interest Bearing Cash 1,992   1,274  56.3% 2,361   
 Total Interest & Fee Income 39,448   35,478  11.2% 38,614   
       
 Interest Expense:     
   Transaction Deposits 124   60  107.0% 129   
   Savings Deposits 227   225  1.0% 229   
   Time Deposits 155   176  -12.2% 160   
   Short-Term Borrowed Funds 8   10  -13.5% 9   
 Total Interest Expense 514   471  9.1% 527   
       
 Net Interest Income 38,934   35,007  11.2% 38,087   
       
 Reversal of Provision for Loan Losses   -     -  n/m    -   
       
 Noninterest Income:     
   Service Charges  4,496   4,756  -5.5% 4,615   
   Merchant Processing Services 2,440   2,346  4.0% 2,464   
   Debit Card Fees 1,685   1,569  7.3% 1,656   
   Other Service Fees 620   620  0.0% 665   
   ATM Processing Fees 703   696  1.0% 687   
   Trust Fees 737   739  -0.3% 733   
   Life Insurance Gains   -     -  n/m    585   
   Financial Services Commissions 112   155  -28.0% 132   
   Equity Securities Gains (Losses) 14     7,955  n/m    (16) 
   Other 1,090   1,464  -25.5% 1,007   
 Total Noninterest Income 11,897   20,300  -41.4% 12,528   
       
 Noninterest Expense:     
   Salaries and  Benefits 13,055   12,652  3.2% 13,415   
   Occupancy and Equipment 5,314   4,860  9.3% 4,809   
   Loss Contingency (1)   -     5,542  n/m    3,500   
   Outsourced Data Processing 2,299   2,325  -1.1% 2,292   
   Amortization of Identifiable Intangibles 447   755  -40.8% 451   
   Professional Fees 565   627  -9.9% 621   
   Impairment of Tax Credit Investments   -     625  n/m    -   
   Courier Service 446   423  5.5% 448   
   Other 3,661   3,632  0.8% 3,830   
 Total Noninterest Expense 25,787   31,441  -18.0% 29,366   
       
 Income Before Income Taxes 25,044   23,866  4.9% 21,249   
 Income Tax Provision 5,989   19,706  n/m  4,256   
 Net Income$19,055  $4,160  n/m $16,993   
       
 Average Common Shares Outstanding 26,729   26,384  1.3% 26,701   
 Diluted Common Shares Outstanding 26,815   26,538  1.0% 26,815   
       
 Per Common Share Data:     
   Basic Earnings$0.71  $0.16  n/m $0.64   
   Diluted Earnings 0.71   0.16  n/m  0.63   
   Dividends Paid 0.40   0.40  0.0% 0.40   
    %  
  12/31'18YTD12/31'17YTDChange  
 Interest & Fee Income:     
   Loans$59,030  $61,740  -4.4%  
   Investment Securities:     
   Equity Securities 354   293  20.6%  
   Debt Securities Available for Sale 60,383   44,371  36.1%  
   Debt Securities Held to Maturity 24,031   27,432  -12.4%  
   Interest Bearing Cash 7,925   4,476  77.0%  
 Total Interest & Fee Income 151,723   138,312  9.7%  
       
 Interest Expense:     
   Transaction Deposits 373   233  59.8%  
   Savings Deposits 902   890  1.3%  
   Time Deposits 647   733  -11.6%  
   Short-Term Borrowed Funds 37   44  -16.5%  
 Total Interest Expense 1,959   1,900  3.1%  
       
 Net Interest Income 149,764   136,412  9.8%  
       
 Reversal of Provision for Loan Losses   -     (1,900)n/m   
       
 Noninterest Income:     
   Service Charges  18,508   19,612  -5.6%  
   Merchant Processing Services 9,630   8,426  14.3%  
   Debit Card Fees 6,643   6,421  3.5%  
   Other Service Fees 2,567   2,584  -0.7%  
   ATM Processing Fees 2,752   2,610  5.4%  
   Trust Fees 2,938   2,875  2.2%  
   Life Insurance Gains 585     -  n/m   
   Financial Services Commissions 499   639  -21.9%  
   Equity Securities (Losses) Gains (52)   7,955  n/m   
   Other 4,079   5,506  -25.9%  
 Total Noninterest Income 48,149   56,628  -15.0%  
       
 Noninterest Expense:     
   Salaries and  Benefits 53,007   51,519  2.9%  
   Occupancy and Equipment 19,679   19,430  1.3%  
   Outsourced Data Processing 9,229   9,035  2.2%  
   Loss Contingency (1) 3,500     5,542  n/m   
   Amortization of Identifiable Intangibles 1,921   3,077  -37.6%  
   Professional Fees 2,842   2,161  31.5%  
   Impairment of Tax Credit Investments   -     625  n/m   
   Courier Service 1,779   1,732  2.7%  
   Other 14,959   14,647  2.1%  
 Total Noninterest Expense 106,916   107,768  -0.8%  
       
 Income Before Income Taxes 90,997   87,172  4.4%  
 Income Tax Provision 19,433   37,147  n/m   
 Net Income$71,564  $50,025  43.1%  
       
 Average Common Shares Outstanding 26,649   26,291  1.4%  
 Diluted Common Shares Outstanding 26,756   26,419  1.3%  
       
 Per Common Share Data:     
 Basic Earnings$2.69  $1.90  n/m   
 Diluted Earnings 2.67   1.89  n/m   
 Dividends Paid 1.60   1.57  1.9%  
       
       
 Footnotes and Abbreviations:     
 (1) In 2018, the Company achieved a mediated settlement to dismiss a lawsuit and recorded an estimated loss contingency. In 2017, the amount recorded represents the Company's estimated refunds to customers of revenue recognized in prior years. The amount of these loss contingencies remains subject to revision until paid.

 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     
       

Loading...
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsPress Releases
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...