Westamerica Bancorporation Reports Second Quarter 2021 Financial Results

07/15/2021 - 10:52 AM

SAN RAFAEL, Calif., July 15, 2021 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the second quarter 2021 of $22.6 million and diluted earnings per common share ("EPS") of $0.84. Second quarter 2021 results include “make-whole” interest income on corporate bonds redeemed prior to maturity, which increased EPS $0.04. These results compare to net income of $20.1 million and EPS of $0.75 for the first quarter 2021, which included “make-whole” interest income on corporate bonds redeemed before maturity that increased EPS $0.02.

"Westamerica continued originating loans for our customers under the second round of the Paycheck Protection Program during the second quarter 2021. Average total deposits grew $327 million from the first quarter 2021 to the second quarter 2021. Westamerica’s valuable deposit base generated a very low 0.03 percent annualized cost of funding our loan and bond portfolios during the second quarter 2021. Operating expenses were well managed in the second quarter 2021 declining $615 thousand from the first quarter 2021 and $463 thousand from the second quarter 2020. Credit quality remained stable with nonperforming loans of $4.4 million at June 30, 2021,” said Chairman, President and CEO David Payne. “Second quarter 2021 results generated an annualized 12.2 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 $44.5 million for the second quarter 2021, including “make-whole” interest income on corporate bonds redeemed prior to maturity of $1.4 million. Second quarter 2021 net interest income (FTE) compares to $42.6 million for the first quarter 2021, which included “make-whole” interest income on corporate bonds redeemed prior to maturity of $700 thousand. Average PPP loans grew $19 million from the first quarter 2021 to the second quarter 2021. Average total deposits grew $327 million from the first quarter 2021 to the second quarter 2021. Checking and savings deposits represented ninety-seven percent of the Company’s average deposit base during the second quarter 2021.

At June 30, 2021, nonperforming loans totaled $4.4 million and the allowance for credit losses on loans was $23.7 million. The Company continues to work with loan customers requesting loan payment deferrals due to economic weakness caused by the pandemic. At June 30, 2021, loans with deferred payments totaled $586 thousand, all of which were consumer automobile loans.

Noninterest income for the second quarter 2021 totaled $11.0 million, compared to noninterest income for the first quarter 2021 of $10.2 million. The increase in noninterest income was primarily due to higher levels of merchant processing services fees and debit card fees.

Noninterest expense for the second quarter 2021 was $24.3 million compared to $24.9 million for the first quarter 2021; the decline in noninterest expense was primarily attributable to the seasonal decline in payroll related taxes.

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

Westamerica Bancorporation Web Address: www.westamerica.com

For additional information contact:
Westamerica Bancorporation
1108 Fifth Avenue, San Rafael, CA 94901
Robert A. Thorson – SVP & Treasurer
707-863-6840
investments@westamerica.com

FORWARD-LOOKING INFORMATION:

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

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

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2020 filed on Form 10-K and quarterly report for the quarter ended March 31, 2021 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.

WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
June 30, 2021
1. Net Income Summary.
		(in thousands except per-share amounts)
								%
		Q2'2021			Q2'2020			Change		Q1'2021
	Net Interest and Fee Income (FTE)	$	44,499		$	42,063		5.8	%	$	42,583
	Provision for Credit Losses		-			-		n/m			-
	Noninterest Income		11,032			9,554		15.5	%		10,189
	Noninterest Expense		24,291			24,754		-1.9	%		24,906
	Income Before Taxes (FTE)		31,240			26,863		16.3	%		27,866
	Income Tax Provision (FTE)		8,661			7,301		18.6	%		7,719
	Net Income	$	22,579		$	19,562		15.4	%	$	20,147
	Average Common Shares Outstanding		26,865			26,935		-0.3	%		26,821
	Diluted Average Common Shares		26,887			26,951		-0.2	%		26,842
	Operating Ratios:
	Basic Earnings Per Common Share	$	0.84		$	0.72		16.7	%	$	0.75
	Diluted Earnings Per Common Share		0.84			0.72		16.7	%		0.75
	Return On Assets (a)		1.29	%		1.30	%				1.23	%
	Return On Common Equity (a)		12.2	%		11.1	%				11.1	%
	Net Interest Margin (FTE) (a)		2.70	%		2.99	%				2.74	%
	Efficiency Ratio (FTE)		43.7	%		48.0	%				47.2	%
	Dividends Paid Per Common Share	$	0.41		$	0.41		0.0	%	$	0.41
	Common Dividend Payout Ratio		49	%		57	%				55	%
								%
		6/30'21YTD			6/30'20YTD			Change
	Net Interest and Fee Income (FTE)	$	87,082		$	82,610		5.4	%
	Provision for Credit Losses		-			4,300		n/m
	Noninterest Income		21,221			21,202		0.1	%
	Noninterest Expense		49,197			49,418		-0.4	%
	Income Before Taxes (FTE)		59,106			50,094		18.0	%
	Income Tax Provision (FTE)		16,380			13,570		20.7	%
	Net Income	$	42,726		$	36,524		17.0	%
	Average Common Shares Outstanding		26,843			27,001		-0.6	%
	Diluted Average Common Shares		26,865			27,024		-0.6	%
	Operating Ratios:
	Basic Earnings Per Common Share	$	1.59		$	1.35		17.8	%
	Diluted Earnings Per Common Share		1.59			1.35		17.8	%
	Return On Assets (a)		1.26	%		1.25	%
	Return On Common Equity (a)		11.6	%		10.4	%
	Net Interest Margin (FTE) (a)		2.72	%		3.04	%
	Efficiency Ratio (FTE)		45.4	%		47.6	%
	Dividends Paid Per Common Share	$	0.82		$	0.82		0.0	%
	Common Dividend Payout Ratio		52	%		61	%
2. Net Interest Income.
		(dollars in thousands)
								%
		Q2'2021			Q2'2020			Change		Q1'2021
	Interest and Fee Income (FTE)	$	44,983		$	42,498		5.8	%	$	43,058
	Interest Expense		484			435		11.3	%		475
	Net Interest and Fee Income (FTE)	$	44,499		$	42,063		5.8	%	$	42,583
	Average Earning Assets	$	6,603,343		$	5,635,014		17.2	%	$	6,244,622
	Average Interest-
	Bearing Liabilities		3,298,221			2,774,450		18.9	%		3,130,227
	Yield on Earning Assets (FTE) (a)		2.73	%		3.02	%				2.77	%
	Cost of Funds (a)		0.03	%		0.03	%				0.03	%
	Net Interest Margin (FTE) (a)		2.70	%		2.99	%				2.74	%
	Interest Expense/
	Interest-Bearing Liabilities (a)		0.06	%		0.06	%				0.06	%
	Net Interest Spread (FTE) (a)		2.67	%		2.96	%				2.71	%
								%
		6/30'21YTD			6/30'20YTD			Change
	Interest and Fee Income (FTE)	$	88,041		$	83,487		5.5	%
	Interest Expense		959			877		9.4	%
	Net Interest and Fee Income (FTE)	$	87,082		$	82,610		5.4	%
	Average Earning Assets	$	6,424,973		$	5,438,578		18.1	%
	Average Interest-
	Bearing Liabilities		3,214,688			2,711,515		18.6	%
	Yield on Earning Assets (FTE) (a)		2.75	%		3.07	%
	Cost of Funds (a)		0.03	%		0.03	%
	Net Interest Margin (FTE) (a)		2.72	%		3.04	%
	Interest Expense/
	Interest-Bearing Liabilities (a)		0.06	%		0.07	%
	Net Interest Spread (FTE) (a)		2.69	%		3.00	%
3. Loans & Other Earning Assets.
		(average volume, dollars in thousands)
								%
		Q2'2021			Q2'2020			Change		Q1'2021
	Total Assets	$	7,004,695		$	6,058,365		15.6	%	$	6,650,164
	Total Earning Assets		6,603,343			5,635,014		17.2	%		6,244,622
	Total Loans		1,257,087			1,232,073		2.0	%		1,251,540
	Total Commercial Loans		413,797			344,053		20.3	%		395,473
	Paycheck Protection Program (PPP) Loans		207,515			132,500		56.6	%		188,971
	Commercial Loans		206,282			211,553		-2.5	%		206,502
	Commercial RE Loans		546,470			578,572		-5.5	%		559,191
	Consumer Loans		296,820			309,448		-4.1	%		296,876
	Total Investment Securities		4,394,169			3,957,851		11.0	%		4,440,621
	Debt Securities Available For Sale		3,953,016			3,293,009		20.0	%		3,947,549
	Debt Securities Held To Maturity		441,153			664,842		-33.6	%		493,072
	Total Interest-Bearing Cash		952,087			445,090		113.9	%		552,461
	Loans/Deposits		20.7	%		23.7	%				21.8	%
								%
		6/30'21YTD			6/30'20YTD			Change
	Total Assets	$	6,828,409		$	5,856,913		16.6	%
	Total Earning Assets		6,424,973			5,438,578		18.1	%
	Total Loans		1,254,328			1,178,004		6.5	%
	Total Commercial Loans		404,685			283,718		42.6	%
	PPP Loans		198,294			66,250		199.3	%
	Commercial Loans		206,391			217,468		-5.1	%
	Commercial RE Loans		552,795			579,157		-4.6	%
	Consumer Loans		296,848			315,129		-5.8	%
	Total Investment Securities		4,417,267			3,901,868		13.2	%
	Debt Securities Available For Sale		3,950,298			3,214,376		22.9	%
	Debt Securities Held To Maturity		466,969			687,492		-32.1	%
	Total Interest-Bearing Cash		753,378			358,706		110.0	%
	Loans/Deposits		21.2	%		23.5	%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
		(average volume, dollars in thousands)
								%
		Q2'2021			Q2'2020			Change		Q1'2021
	Total Deposits	$	6,074,730		$	5,200,475		16.8	%	$	5,748,070
	Noninterest Demand		2,888,259			2,496,840		15.7	%		2,713,632
	Interest-Bearing Transaction		1,208,584			980,872		23.2	%		1,130,760
	Savings		1,822,625			1,558,201		17.0	%		1,746,815
	Time greater than $100K		70,750			72,267		-2.1	%		71,241
	Time less than $100K		84,512			92,295		-8.4	%		85,622
	Total Short-Term Borrowings		111,750			70,116		59.4	%		95,575
	Other Borrowed Funds		-			699		-100.0	%		214
	Shareholders' Equity		744,746			705,882		5.5	%		735,496
	Demand Deposits/
	Total Deposits		47.5	%		48.0	%				47.2	%
	Transaction & Savings
	Deposits / Total Deposits		97.4	%		96.8	%				97.3	%
								%
		6/30'21YTD			6/30'20YTD			Change
	Total Deposits	$	5,912,303		$	5,014,731		17.9	%
	Noninterest Demand		2,801,428			2,359,788		18.7	%
	Interest-Bearing Transaction		1,169,888			961,295		21.7	%
	Savings		1,784,929			1,527,282		16.9	%
	Time greater than $100K		70,994			73,058		-2.8	%
	Time less than $100K		85,064			93,308		-8.8	%
	Total Short-Term Borrowings		103,707			56,223		84.5	%
	Other Borrowed Funds		106			349		-69.6	%
	Shareholders' Equity		740,147			705,606		4.9	%
	Demand Deposits/
	Total Deposits		47.4	%		47.1	%
	Transaction & Savings
	Deposits / Total Deposits		97.4	%		96.7	%
5. Interest Yields Earned & Rates Paid.
		(dollars in thousands)
		Q2'2021
		Average			Income/			Yield (a) /
		Volume			Expense			Rate (a)
	Interest & Fee Income Earned
	Total Earning Assets (FTE)	$	6,603,343		$	44,983		2.73	%
	Total Loans (FTE)		1,257,087			15,168		4.84	%
	Total Commercial Loans (FTE)		413,797			4,763		4.62	%
	PPP Loans		207,515			2,713		5.25	%
	Commercial Loans (FTE)		206,282			2,050		3.98	%
	Commercial RE Loans		546,470			6,994		5.13	%
	Consumer Loans		296,820			3,411		4.61	%
	Total Investments (FTE)		4,394,169			29,556		2.69	%
	Total Interest-Bearing Cash		952,087			259		0.11	%
	Interest Expense Paid
	Total Earning Assets		6,603,343			484		0.03	%
	Total Interest-Bearing Liabilities		3,298,221			484		0.06	%
	Total Interest-Bearing Deposits		3,186,471			466		0.06	%
	Interest-Bearing Transaction		1,208,584			93		0.03	%
	Savings		1,822,625			263		0.06	%
	Time less than $100K		84,512			42		0.20	%
	Time greater than $100K		70,750			68		0.39	%
	Total Short-Term Borrowings		111,750			18		0.07	%
	Net Interest Income and
	Margin (FTE)				$	44,499		2.70	%
		Q2'2020
		Average			Income/			Yield (a) /
		Volume			Expense			Rate (a)
	Interest & Fee Income Earned
	Total Earning Assets (FTE)	$	5,635,014		$	42,498		3.02	%
	Total Loans (FTE)		1,232,073			15,376		5.02	%
	Total Commercial Loans (FTE)		344,053			4,052		4.74	%
	PPP Loans		132,500			1,673		5.07	%
	Commercial Loans (FTE)		211,553			2,379		4.52	%
	Commercial RE Loans		578,572			7,892		5.49	%
	Consumer Loans		309,448			3,432		4.46	%
	Total Investments (FTE)		3,957,851			27,009		2.73	%
	Total Interest-Bearing Cash		445,090			113		0.10	%
	Interest Expense Paid
	Total Earning Assets		5,635,014			435		0.03	%
	Total Interest-Bearing Liabilities		2,774,450			435		0.06	%
	Total Interest-Bearing Deposits		2,703,635			424		0.06	%
	Interest-Bearing Transaction		980,872			74		0.03	%
	Savings		1,558,201			224		0.06	%
	Time less than $100K		92,295			47		0.20	%
	Time greater than $100K		72,267			79		0.44	%
	Total Short-Term Borrowings		70,116			10		0.06	%
	Other Borrowed Funds		699			1		0.35	%
	Net Interest Income and
	Margin (FTE)				$	42,063		2.99	%
6. Noninterest Income.
		(dollars in thousands except per-share amounts)
								%
		Q2'2021			Q2'2020			Change		Q1'2021
	Service Charges on Deposits	$	3,235		$	3,151		2.6	%	$	3,304
	Merchant Processing Services		3,279			2,277		44.0	%		2,560
	Debit Card Fees		1,791			1,459		22.8	%		1,601
	Trust Fees		827			714		15.8	%		801
	ATM Processing Fees		618			518		19.3	%		601
	Other Service Fees		491			420		16.9	%		469
	Financial Services Commissions		95			123		-22.8	%		70
	Securities Gains		34			71		n/m			-
	Other Noninterest Income		662			821		-19.4	%		783
	Total Noninterest Income	$	11,032		$	9,554		15.5	%	$	10,189
	Total Revenue (FTE)	$	55,531		$	51,617		7.6	%	$	52,772
	Noninterest Income/Revenue (FTE)		19.9	%		18.5	%				19.3	%
	Service Charges/Avg. Deposits (a)		0.21	%		0.24	%				0.23	%
	Total Revenues (FTE) Per Avg.
	Common Share (a)	$	8.29		$	7.71		7.6	%	$	7.98
								%
		6/30'21YTD			6/30'20YTD			Change
	Service Charges on Deposits	$	6,539		$	7,399		-11.6	%
	Merchant Processing Services		5,839			4,635		26.0	%
	Debit Card Fees		3,392			2,927		15.9	%
	Trust Fees		1,628			1,491		9.2	%
	ATM Processing Fees		1,219			1,097		11.1	%
	Other Service Fees		960			926		3.7	%
	Financial Services Commissions		165			248		-33.5	%
	Securities Gains		34			71		n/m
	Other Noninterest Income		1,445			2,408		-40.0	%
	Total Noninterest Income	$	21,221		$	21,202		0.1	%
	Total Revenue (FTE)	$	108,303		$	103,812		4.3	%
	Noninterest Income/Revenue (FTE)		19.6	%		20.4	%
	Service Charges/Avg. Deposits (a)		0.22	%		0.30	%
	Total Revenues (FTE) Per Avg./
	Common Share (a)	$	8.14		$	7.73		5.2	%
7. Noninterest Expense.
		(dollars in thousands)
								%
		Q2'2021			Q2'2020			Change		Q1'2021
	Salaries & Benefits	$	12,097		$	12,900		-6.2	%	$	12,665
	Occupancy and Equipment		4,808			4,791		0.4	%		4,880
	Outsourced Data Processing		2,425			2,324		4.3	%		2,390
	Professional Fees		830			643		29.1	%		942
	Courier Service		567			508		11.6	%		504
	Amortization of
	Identifiable Intangibles		68			73		-6.8	%		69
	Other Noninterest Expense		3,496			3,515		-0.5	%		3,456
	Total Noninterest Expense	$	24,291		$	24,754		-1.9	%	$	24,906
	Noninterest Expense/
	Avg. Earning Assets (a)		1.48	%		1.77	%				1.62	%
	Noninterest Expense/Revenues (FTE)		43.7	%		48.0	%				47.2	%
								%
		6/30'21YTD			6/30'20YTD			Change
	Salaries & Benefits	$	24,762		$	25,918		-4.5	%
	Occupancy and Equipment		9,688			9,723		-0.4	%
	Outsourced Data Processing		4,815			4,729		1.8	%
	Professional Fees		1,772			1,032		71.7	%
	Courier Service		1,071			999		7.2	%
	Amortization of
	Identifiable Intangibles		137			146		-6.2	%
	Other Noninterest Expense		6,952			6,871		1.2	%
	Total Noninterest Expense	$	49,197		$	49,418		-0.4	%
	Noninterest Expense/
	Avg. Earning Assets (a)		1.54	%		1.83	%
	Noninterest Expense/Revenues (FTE)		45.4	%		47.6	%
8. Allowance for Credit Losses.
		(dollars in thousands)
								%
		Q2'2021			Q2'2020			Change		Q1'2021
	Average Total Loans	$	1,257,087		$	1,232,073		2.0	%	$	1,251,540
	Beginning of Period Allowance for
	Credit Losses on Loans (ACLL)	$	23,483		$	24,804		-5.3	%	$	23,854
	Provision for Credit Losses		-			-		n/m			-
	Net ACLL Recoveries (Losses)		254			(275	)	-192.4	%		(371	)
	End of Period ACLL	$	23,737		$	24,529		-3.2	%	$	23,483
	Gross ACLL Recoveries /
	Gross ACLL Losses		176	%		66	%				60	%
	Net ACLL (Recoveries) Losses /
	Avg. Total Loans (a)		-0.08	%		0.09	%				0.12	%
								%
		6/30'21YTD			6/30'20YTD			Change
	Average Total Loans	$	1,254,328		$	1,178,004		6.5	%
	Prior Period ACLL	$	23,854		$	19,484		22.4	%
	Adoption of ASU 2016-13(1)		-			2,017		n/m
	Beginning of Period ACLL		23,854			21,501		10.9	%
	Provision for Credit Losses		-			4,300		n/m
	Net ACLL Losses		(117	)		(1,272	)	-90.8	%
	End of Period ACLL	$	23,737		$	24,529		-3.2	%
	Gross ACLL Recoveries /
	Gross ACLL Losses		91	%		46	%
	Net ACLL Losses /
	Avg. Total Loans (a)		0.02	%		0.22	%
		(dollars in thousands)
								%
		6/30/21			6/30/20			Change		3/31/21
	Allowance for Credit Losses on Loans	$	23,737		$	24,529		-3.2	%	$	23,483
	Allowance for Credit Losses on
	HTM Securities		9			16		-44.6	%		9
	Total Allowance for Credit Losses	$	23,746		$	24,545		-3.3	%	$	23,492
	Allowance for Unfunded
	Credit Commitments	$	101		$	53		90.0	%	$	101
9. Credit Quality.
		(dollars in thousands)
								%
		6/30/21			6/30/20			Change		3/31/21
	Nonperforming Loans:
	Nonperforming Nonaccrual	$	652		$	590		10.5	%	$	402
	Performing Nonaccrual		3,564			3,643		-2.2	%		3,569
	Total Nonaccrual Loans		4,216			4,233		-0.4	%		3,971
	90+ Days Past Due Accruing Loans		167			290		-42.4	%		132
	Total		4,383			4,523		-3.1	%		4,103
	Repossessed Loan Collateral		-			43		-100.0	%		-
	Total Nonperforming Assets	$	4,383		$	4,566		-4.0	%	$	4,103
	Total Loans Outstanding	$	1,194,834		$	1,316,359		-9.2	%	$	1,293,756
	Total Assets		7,147,779			6,463,889		10.6	%		6,912,481
	Loans:
	Allowance for Credit Losses on Loans	$	23,737		$	24,529		-3.2	%	$	23,483
	Allowance for Credit Losses on Loans /
	Loans		1.99	%		1.86	%				1.82	%
	Nonperforming Loans/Total Loans		0.37	%		0.34	%				0.32	%
10. Capital.
		(in thousands, except per-share amounts)
								%
		6/30/21			6/30/20			Change		3/31/21
	Shareholders' Equity	$	842,196		$	808,076		4.2	%	$	812,132
	Total Assets		7,147,779			6,463,889		10.6	%		6,912,481
	Shareholders' Equity/
	Total Assets		11.78	%		12.50	%				11.75	%
	Shareholders' Equity/
	Total Loans		70.49	%		61.39	%				62.77	%
	Tangible Common Equity Ratio		10.24	%		10.81	%				10.15	%
	Common Shares Outstanding		26,865			26,933		-0.3	%		26,864
	Common Equity Per Share	$	31.35		$	30.00		4.5	%	$	30.23
	Market Value Per Common Share		58.03			57.42		1.1	%		62.78
	Share Repurchase Programs
		(shares in thousands)
								%
		Q2'2021			Q2'2020			Change		Q1'2021
	Total Shares Repurchased		-			13		n/m			4
	Average Repurchase Price	$	-		$	52.27		n/m		$	61.09
	Net Shares Issued		(1	)		(1	)	n/m			(57	)
								%
		6/30'21YTD			6/30'20YTD			Change
	Total Shares Repurchased		4			193		n/m
	Average Repurchase Price	$	61.09		$	51.50		n/m
	Net Shares (Issued) Repurchased		(58	)		129		n/m
11. Period-End Balance Sheets.
		(unaudited, dollars in thousands)
								%
		6/30/21			6/30/20			Change		3/31/21
	Assets:
	Cash and Due from Banks	$	939,929		$	500,820		87.7	%	$	866,457
	Debt Securities Available For Sale		4,304,162			3,708,370		16.1	%		3,990,570
	Debt Securities Held To Maturity (2)		414,413			638,281		-35.1	%		469,259
	Loans		1,194,834			1,316,359		-9.2	%		1,293,756
	Allowance For Credit Losses on Loans		(23,737	)		(24,529	)	-3.2	%		(23,483	)
	Total Loans, net		1,171,097			1,291,830		-9.3	%		1,270,273
	Other Real Estate Owned		-			43		n/m			-
	Premises and Equipment, net		32,080			34,061		-5.8	%		32,216
	Identifiable Intangibles, net		967			1,245		-22.4	%		1,035
	Goodwill		121,673			121,673		0.0	%		121,673
	Other Assets		163,458			167,566		-2.5	%		160,998
	Total Assets	$	7,147,779		$	6,463,889		10.6	%	$	6,912,481
	Liabilities and Shareholders' Equity:
	Deposits:
	Noninterest-Bearing	$	2,872,920		$	2,702,885		6.3	%	$	2,798,542
	Interest-Bearing Transaction		1,200,634			997,593		20.4	%		1,179,484
	Savings		1,849,258			1,605,169		15.2	%		1,791,636
	Time		153,577			162,765		-5.6	%		154,171
	Total Deposits		6,076,389			5,468,412		11.1	%		5,923,833
	Short-Term Borrowed Funds		90,043			86,170		4.5	%		95,479
	Other Borrowed Funds		-			-		n/m			1,681
	Other Liabilities		139,151			101,231		37.5	%		79,356
	Total Liabilities		6,305,583			5,655,813		11.5	%		6,100,349
	Shareholders' Equity:
	Common Equity:
	Paid-In Capital		470,365			467,386		0.6	%		469,885
	Accumulated Other
	Comprehensive Income		86,921			93,732		n/m			68,901
	Retained Earnings		284,910			246,958		15.4	%		273,346
	Total Shareholders' Equity		842,196			808,076		4.2	%		812,132
	Total Liabilities and
	Shareholders' Equity	$	7,147,779		$	6,463,889		10.6	%	$	6,912,481
12. Income Statements.
		(unaudited, in thousands except per-share amounts)
								%
		Q2'2021			Q2'2020			Change		Q1'2021
	Interest & Fee Income:
	Loans	$	15,064		$	15,278		-1.4	%	$	14,581
	Equity Securities		110			103		6.8	%		110
	Debt Securities Available For Sale (3)		26,481			22,429		18.1	%		24,889
	Debt Securities Held To Maturity		2,362			3,616		-34.7	%		2,598
	Interest-Bearing Cash		259			113		129.2	%		138
	Total Interest & Fee Income		44,276			41,539		6.6	%		42,316
	Interest Expense:
	Transaction Deposits		93			74		25.7	%		89
	Savings Deposits		263			224		17.4	%		250
	Time Deposits		110			126		-12.7	%		120
	Short-Term Borrowed Funds		18			10		80.0	%		16
	Other Borrowed Funds		-			1		-100.0	%		-
	Total Interest Expense		484			435		11.3	%		475
	Net Interest Income		43,792			41,104		6.5	%		41,841
	Provision for Credit Losses		-			-		n/m			-
	Noninterest Income:
	Service Charges		3,235			3,151		2.6	%		3,304
	Merchant Processing Services		3,279			2,277		44.0	%		2,560
	Debit Card Fees		1,791			1,459		22.8	%		1,601
	Trust Fees		827			714		15.8	%		801
	ATM Processing Fees		618			518		19.3	%		601
	Other Service Fees		491			420		16.9	%		469
	Financial Services Commissions		95			123		-22.8	%		70
	Securities Gains		34			71		n/m			-
	Other Noninterest Income		662			821		-19.4	%		783
	Total Noninterest Income		11,032			9,554		15.5	%		10,189
	Noninterest Expense:
	Salaries and Benefits		12,097			12,900		-6.2	%		12,665
	Occupancy and Equipment		4,808			4,791		0.4	%		4,880
	Outsourced Data Processing		2,425			2,324		4.3	%		2,390
	Professional Fees		830			643		29.1	%		942
	Courier Service		567			508		11.6	%		504
	Amortization of Identifiable Intangibles		68			73		-6.8	%		69
	Other Noninterest Expense		3,496			3,515		-0.5	%		3,456
	Total Noninterest Expense		24,291			24,754		-1.9	%		24,906
	Income Before Income Taxes		30,533			25,904		17.9	%		27,124
	Income Tax Provision		7,954			6,342		25.4	%		6,977
	Net Income	$	22,579		$	19,562		15.4	%	$	20,147
	Average Common Shares Outstanding		26,865			26,935		-0.3	%		26,821
	Diluted Common Shares Outstanding		26,887			26,951		-0.2	%		26,842
	Per Common Share Data:
	Basic Earnings	$	0.84		$	0.72		16.7	%	$	0.75
	Diluted Earnings		0.84			0.72		16.7	%		0.75
	Dividends Paid		0.41			0.41		0.0	%		0.41
								%
		6/30'21YTD			6/30'20YTD			Change
	Interest & Fee Income:
	Loans	$	29,645		$	29,087		1.9	%
	Equity Securities		220			206		6.9	%
	Debt Securities Available For Sale (3)		51,370			43,744		17.4	%
	Debt Securities Held To Maturity		4,960			7,524		-34.1	%
	Interest-Bearing Cash		397			969		-59.0	%
	Total Interest & Fee Income		86,592			81,530		6.2	%
	Interest Expense:
	Transaction Deposits		182			158		15.2	%
	Savings Deposits		513			441		16.2	%
	Time Deposits		230			259		-11.3	%
	Short-Term Borrowed Funds		34			18		88.9	%
	Other Borrowed Funds		-			1		-100.0	%
	Total Interest Expense		959			877		9.4	%
	Net Interest Income		85,633			80,653		6.2	%
	Provision for Credit Losses		-			4,300		n/m
	Noninterest Income:
	Service Charges		6,539			7,399		-11.6	%
	Merchant Processing Services		5,839			4,635		26.0	%
	Debit Card Fees		3,392			2,927		15.9	%
	Trust Fees		1,628			1,491		9.2	%
	ATM Processing Fees		1,219			1,097		11.1	%
	Other Service Fees		960			926		3.7	%
	Financial Services Commissions		165			248		-33.5	%
	Securities Gains		34			71		n/m
	Other Operating		1,445			2,408		-40.0	%
	Total Noninterest Income		21,221			21,202		0.1	%
	Noninterest Expense:
	Salaries and Benefits		24,762			25,918		-4.5	%
	Occupancy and Equipment		9,688			9,723		-0.4	%
	Outsourced Data Processing		4,815			4,729		1.8	%
	Professional Fees		1,772			1,032		71.7	%
	Courier Service		1,071			999		7.2	%
	Amortization of Identifiable Intangibles		137			146		-6.2	%
	Other Operating		6,952			6,871		1.2	%
	Total Noninterest Expense		49,197			49,418		-0.4	%
	Income Before Income Taxes		57,657			48,137		19.8	%
	Income Tax Provision		14,931			11,613		28.6	%
	Net Income	$	42,726		$	36,524		17.0	%
	Average Common Shares Outstanding		26,843			27,001		-0.6	%
	Diluted Common Shares Outstanding		26,865			27,024		-0.6	%
	Per Common Share Data:
	Basic Earnings	$	1.59		$	1.35		17.8	%
	Diluted Earnings		1.59			1.35		17.8	%
	Dividends Paid		0.82			0.82		0.0	%
	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) The Company adopted ASU 2016-13, effective January 1, 2020. Debt Securities Held To Maturity of $414,413 thousand at June 30, 2021, $469,259 thousand at March 31, 2021 and $638,281 thousand at June 30, 2020 are net of related reserve for expected credit losses of $9 thousand, $9 thousand and $16 thousand, respectively.
	(3) Interest income on Debt Securities Available For Sale included make-whole interest income on called corporate bonds of $1.4 million in the second quarter 2021 and $700 thousand in the first quarter 2021.
	(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